Kumho Tire Co., Inc. Business Report FY ended Dec. 2016

Financial Overview (Consolidated)

(in millions of won)
Dec. 2016)
Dec. 2015)
Rate of
Change (%)
Sales 2,947,227 3,040,406 (3.1) -
Operating income 120,050 135,962 (11.7) -
Net income (37,895) (67,465) - -


-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,
-Year established : 2013
-Main R&D center
Kumho Tire America Technical Center (K.A.T.C) Ohio
-Year established : 2006
-Developing tires for the North American OEM market and the aftermarket
Kumho Tire Europe Technical Center (K.E.T.C) Frankfurt,
-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 (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)