Kumho Tire has announced that it has selected Opole, Poland, as the site for its European plant. The decision is part of the company’s strategy to expand its global production footprint and accelerate growth in the European market.
The European facility in Opole is scheduled to begin initial operations in August 2028, pending investment and regulatory approval. The first phase will support an annual production capacity of six million tires, with phased expansions planned according to market demand. The total investment is valued at US$587 million.
Kumho assessed several European countries as potential locations for its new plant, considering factors such as site suitability, market growth potential, investment stability, profitability and available incentives. After evaluating the final two candidate regions, the company chose Opole due to its logistical advantages, skilled workforce, competitive infrastructure, stable access to the European market and incentives provided by the Polish government.
Accounting for roughly 25% of global tire consumption, Europe represents a market of substantial strategic importance for Kumho with European sales making up approximately 26.6% of the company’s total revenue in 2024. By establishing a local production base, Kumho aims to secure a stable foundation for sales expansion while strengthening its portfolio of high-value-added products (HVPs), including high-performance and large-inch tires. This move is expected to boost both profitability and brand value.
Europe also comprises about 17% of the global original equipment (OE) tire market and is home to major high-end vehicle manufacturers. Until now, the absence of a European production base has limited Kumho Tire’s supply stability and lead-time competitiveness.
“The European market holds tremendous strategic significance in the global tire industry,” said Jung Il-Taik, president and CEO of Kumho Tire. “By establishing local production and supply capabilities in Europe, Kumho Tire will strengthen its market competitiveness, local responsiveness and attractiveness to European vehicle manufacturers with the product quality for which the brand is renowned.”
Meanwhile, Kumho Tire plans to complete a new factory in Hampyeong, Korea by the end of 2027, with an annual capacity of 5.3 million tires.
In related news, Hankook Tire custom-develops OE tire for Volkswagen Tiguan and Tayron
