South Korea’s Kumho Tire has confirmed plans to open its first European tyre manufacturing facility by 2027, as part of a strategic push to expand its footprint in the region’s premium original equipment (OE) market.
The company has shortlisted Poland, Serbia and Portugal as potential sites for the factory, which is expected to require an investment exceeding KRW1 trillion (US$705 million). CEO Jung Il-taik disclosed the move during the launch of Kumho’s new Ecsta Sport tyre range in South Korea, stating that the company is “actively evaluating” shortlisted locations.
The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers. The tyre maker has recently secured OE supply contracts with major brands including Volkswagen Group, BMW, and Mercedes-Benz — relationships it aims to grow further through the advantages of local production.
Kumho currently operates eight tyre manufacturing facilities across South Korea, China, the United States, and Vietnam. However, the lack of a European production base has increasingly been seen as a limiting factor in its ability to compete in the premium OE segment — particularly in a market where logistics efficiency and regional sourcing play a key role in procurement decisions.
The new facility is expected to reduce delivery times, cut freight costs, and improve responsiveness to European customer demands — all critical advantages in securing future contracts with high-end OEMs.
Kumho’s push into the European premium space comes amid growing competition from lower-cost manufacturers in India and China, prompting the company to refocus on high-margin segments and strengthen its global brand position.
Kumho’s move underlines a growing trend among Asian tyre manufacturers to localise production in Europe to better serve EV-focused and premium OE markets. By establishing a plant within the region, Kumho not only addresses logistical inefficiencies but also positions itself to participate more directly in the evolving European vehicle landscape, including upcoming sustainability and regulatory requirements. This development is likely to influence sourcing strategies across both the OE and replacement tyre sectors.
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