Kumho Tire Co., Inc. Business Report FY ended Dec. 2016
Financial Overview (Consolidated) |
(in millions of won) |
| FY2016 (ended Dec. 2016) |
FY2015 (ended Dec. 2015) |
Rate of Change (%) |
Remarks | |
| Sales | 2,947,227 | 3,040,406 | (3.1) | - |
| Operating income | 120,050 | 135,962 | (11.7) | - |
| Net income | (37,895) | (67,465) | - | - |
Contracts
-The Company announced that it will supply its Solus TA31 tires as original equipment for the 2017 model-year Chrysler Pacifica minivans, which will be sold in the U.S. and Canada. The tire size will be 245/50R20 and 235/65R17. (From a press release on May 3, 2016)
R&D Structure
| Facility | Location | Overview |
| Central R&D Center | Yong-in, Gyeonggi-do, Korea |
-Year established : 2013 -Main R&D center |
| Kumho Tire America Technical Center (K.A.T.C) | Ohio USA |
-Year established : 2006 -Developing tires for the North American OEM market and the aftermarket |
| Kumho Tire Europe Technical Center (K.E.T.C) | Frankfurt, Germany |
-Year established : 1997 -Developing high-performance tires for the European market |
| Kumho Tire China Technical Center (K.C.T.C) | Tianjin China |
-Year established : 2006 -Developing high-performance tires for the Chinese and European markets |
R&D Expenditure (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Amount | 93,701 | 89,702 | 98,580 |
| % of sales | 3.18% | 2.95% | 2.87% |
Capital Investment |
(in millions of won) |
| Division | Planned amount of investment for 2016 | Amount invested in 2016 | Purpose of investment |
| Tires (construction/industrial equipment) | 272,631 | 255,950 | Quality enhancement |
Investment outside Korea
-The Company announced that it has held a ceremony to celebrate the completion of a new tire plant in Macon, Georgia, U.S. The Georgia plant is the Company's third overseas production base after China and Vietnam. The plant will produce 17-inch or larger passenger car tires and ultra high-performance tires. Eighty percent of the tires produced at the plant are expected to be provided as original equipment to Hyundai-Kia Motor's and Chrysler's plants in North America. The Georgia factory will first be able to produce 4 million tires per year, and plans to increase its capacity to 10 million units going forward. (From a press release on May 2, 2016)