Kumho Tire Co., Inc. Business Report FY2010

Business Highlights

Highlights in FY2010

Financial Overview (Non-consolidated)

(in millions of won)
- FY2010
Dec. 31)
FY2009 Rate of
Sales 2,701,990
1,894,699 42.6% -
Operating income 244,947
(213,579) - -
Net income 8,900
(776,168) - -


The Company was selected as an original equipment tire supplier for the Chrysler's 2011 Jeep Grand Cherokee destined for export. The tire sizes are 265/60R18 and 265/50R20. The vehicle is exported to around 100 countries in Europe, Asia, South America, Africa, the Middle East and other regions. In 2010, the tire company also won a contract to supply tires for the Mercedes-Benz Sprinter and the Ford Fiesta. (From a press release on Nov. 12, 2010)


The Company will supply tires for the Mercedes-Benz Sprinter, a delivery van manufactured by Daimler, starting in May 2010. The tires will be installed on the Sprinter that will be sold in Europe, North America and Asia. (From a press release on May 11, 2010)


R&D Structure

Facility Location Overview
Kumho R&D Center (K.R.D.C) Gwangju
-Year established : 1981
-Developing tires for the domestic and global market
Kumho Tire America Technical Center (K.A.T.C) Ohio
-Year established : 1990
-Developing tires for the North American OEM market and the aftermarket
Kumho Tire Europe Technical Center (K.E.T.C) Birmingham
-Year established : 1997
-Developing high-performance tires for the European market
Kumho Tire China Technical Center (K.C.T.C) Tianjin
-Year established : 2006
-Developing high-performance tires for the Chinese and European markets

R&D Expenditure (Non-consolidated)

(in millions of won)
- FY2010 FY2009 FY2008
Amount 50,049 63,270 65,278
% of sales 1.9% 3.34% 2.72%

Investment Activities

Capital Expenditure

-In 2010, the Company invested 85,148 million won in plants and equipment, mainly for increasing production capacity.

-Between 2010 and 2012, the Company plans to invest 79,959 million won in plants and equipment, mainly for increasing production capacity at its Vietnam plant.