Kumho Tire has begun negotiations on delivering OEM products to Yokohama Rubber. The two companies have already been co-developing next-generation tires after forging a strategic R&D alliance with each other in May last year.
“Negotiations are under way on issues including specifications, volume and start of shipment,” said a Kumho official.
“We will consider gradually expanding shipment volume depending on orders secured by our plants in China and the demand for OEM products. We can start delivery as early as this year, if we make rapid progress on the negotiations.”
Kumho could use the potential OEM deal to bolster its ties with Yokohama as well as to increase the utilization rate of its plants in China amid concerns that this year might see global tire makers struggling to fill idle capacity in China with US authorities expected to slap anti-dumping duties on tires made in the country.
May 27, 2015