Kumho Tire's plan to restart US plant was shelved for 6 years due to debt problems

According to reports, South Korea’s Kumho Tire announced recently that it plans to restart the construction of a factory in the United States, and this project has so far been put on hold for six years.

In May 2008, Kumho Tire broke ground on the construction of the Macon plant in Georgia, the United States. At that time, the company planned to invest US$165 million to build a tire plant with a capacity of 2.1 million strips per year. However, due to debt difficulties, Kumho announced that the project was postponed for one year after eight months, and by October 2009, Kumho Tire announced once again that the project was postponed for three years.

In 2009, Kumho Tire suffered an operating loss of 119.6 billion won (approximately US$117 million), but the company achieved a turnaround the following year, and subsequently remained profitable, and last year had already paid its outstanding debt from 2009. The 3.1 trillion won was reduced to 2.6 trillion won.

As the financial situation tended to improve, Kumho Tire expressed its willingness to restart the US plant construction plan in September 2013. Recently, the company has submitted a loan application to the bank, but this process may still take some time.

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