Kumho Tire Co., Inc. Business Report FY ended Dec. 2017
Financial Overview (Consolidated) |
(in millions of won) |
| FY2017 (ended Dec. 2016) |
FY2016 (ended Dec. 2015) |
Rate of Change (%) |
Remarks | |
| Sales | 2,876,420 | 2,947,227 | (2.4) | - |
| Operating income | (157,160) | 120,050 | - | - |
| Net income | (111,842) | (37,895) | (195.1) | - |
Change in Top Shareholders
-Kumho Tire Co., Ltd. held an extraordinary general shareholders' meeting on July 6, 2017, and appointed Mr. Chai Yongsen, Chairman and Mr. Zhang Junhua, Chief Financial Operator (CFO) of the Qingdao Doublestar Group to inside directors of the Korean company. On the same day, Qingdao Doublestar invested Chinese yuan (CNY) 3.9 billion or Korean won (KRW) 646.3 billion to acquire a 45% stake in the tire manufacturer and become the top shareholder. As a result, the investment ratio of the investors' group of Korea Development Bank and other companies went down by 23.1%. (From some releases on July 7, 2018)
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, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Amount | 93,674 | 93,701 | 89,702 |
| % of sales | 3.26% | 3.18% | 2.95% |
Capital Investment |
(in millions of won) |
| Division | Planned amount of investment for 2017 | Amount invested in 2017 | Purpose of investment |
| Tires (construction/industrial equipment) | 289,165 | 160,779 | 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)