Qingdao Doublestar Co. has concluded the acquisition of South Korea’s second-largest tyre manufacturer Kumho Tire Co after lengthy negotiations. The Chinese tyre producer acquired controlling stakes of 45% in the Korean firm.
Doublestar together with Qingdao Conson Development and Qingdao City Investment jointly invested RMB 3.9 billion for the acquisition of stakes in Gwangju headquartered Kumho Tire formerly known as Samyang Tire.
Creditors like state-run Korea Development Bank (KDB) will continue to hold 23% of the shares, maintaining the position as the second largest shareholder.
“The advantage of Kumho Tire is PCR tyres and Doublestar is TBR tyres. The coordination and integration of the two sides is not simply 1+1=2, but a multiplier effect”, said Chai Yongsen, Chairman, Doublestar Group,
He further added, “The two sides should utilize respective advantages and strive to be one of the world’s greatest tyre groups from the technology, products, manufacturing, services and models that lead the global tyre future.”
Started around six-decades ago, Kumho’s PCR range known for “fashion, sports and fuel economy”, used OEM fitment including Mercedes Benz, BMW, Volkswagen, General Motors, Hyundai and KIA. Kumho Tire’s market share in China once exceeded 20% and latest X3 BMW is equipped with Kumho tires.
Kumho Tire operates eight sites with three each in South Korea & China, one each in Vietnam & United States — with a combined production capacity of 54.64 million tyres annually. Kumho owns five R&D centers globally.