Doublestar completes agreement to buy 45% stake in Kumho Tire

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Doublestar Group announced that it has completed an agreement with South Korea’s Korea Development Bank (KDB) to acquire a 45% stake in Kumho Tire for RMB 3.9 billion ($500M). By this, Doublestar becomes Kumho Tire’s controlling shareholder, while KDB and other Kumho creditors will remain the second largest shareholder with a 23% stake.

Read the source article at Traction News

Kumho Tire CEO ‘grateful’ for dealers’ support as first post-acquisition tyre launched

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A new owner has arrived on the scene, but it is business as usual for Kumho Tire in Korea. The tyre maker has launched its first new tyre since Doublestar became Kumho Tire’s largest shareholder last month. More than 350 dealers from across South Korea attended the unveiling of the Kumho Majesty 9 Solus TA91 yesterday.

Read the source article at Tyrepress

Kumho’s 2017 profits plunge as materials costs rise, OE volumes fall

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SEOUL, South Korea—Kumho Tire Co. Inc. suffered an 81.2 percent drop in pre-tax operating profit for fiscal 2017, on 2 percent lower sales.

Kumho’s earnings before interest, tax, depreciation and amortization (EBITDA) fell to $57.4 million on sales of $2.55 billion, according to the company’s fourth quarter investor relations documents. As a result, the operating ratio fell more than nine points to 2.3 percent. The operating result turned red to the tune of $139 million. Kumho did not report net earnings.

Read the source article at Rubber and Plastics News

NHTSA Issues Kumho Recall Over Potential Tread Separation

The National Highway Transportation Safety Administration (NHTSA) has issued a recall affecting about 1,700 Kumho Solus tires manufactured in March and early April. The 1,773 affected Solus KH16 tires in size p225/65R17 were manufactured between March 26 and April 1. According to the NHTSA, the affected tires may experience tread separation in severe conditions. Under the recall, Kumho is required to notify owners of the defect and tire dealers will replace the tires, free of charge.

Read the source article at Tire Review

Fasten your seatbelt for next 8 months

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The year is barely 110 days old, and changes continue to happen within the tire industry at a breakneck pace.

First, Michelin North America Inc. and Sumitomo Corp. of America (SCOA) announced their intentions to combine Michelin’s wholesale distribution assets with TBC Corp., creating a 50/50 joint venture, National Tire Wholesale (NTW). The business, with 144 locations across North America, will distribute nearly 15 million tires.

Days later, Continental A.G. revealed it is considering restructuring to position itself for the upcoming disruption in the automotive industry.

In early March, Mavis Discount Tire and…

Read the source article at Tire Business

Kumho Tire says to issue shares to China’s Doublestar worth $604 mln

Forex Kumho Tire says to issue shares to China’s Doublestar worth $604 mln South Korea’s Kumho Tire said on Friday that it plans to issue new shares worth 646 billion won ($604.99 million) to Qingdao Doublestar Co Ltd as part of an agreed deal for the Chinese company to assume control over it.

Read the source article at SHARENET

Kumho union votes for Doublestar takeover

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Seoul – Kumho Tire’s labour union has voted in favour of a plan to sell a 42.01% majority share of the South Korean tire maker to China’s Doublestar Tyre, according to business news website, The Pulse.

The 2 April report said more than 2,700 unionised workers took part in the vote, of which 60.6% were in favour of the sale to the Chinese company.

Chinese investors led by Qingdao Doublestar told ERJ in March that they had reached an agreement with Kumho’s shareholder Korea Development Bank to…

Read the source article at European Rubber Journal

Kumho Tire union accepts takeover deal to avert bankruptcy

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SEOUL — Workers at troubled Kumho Tire have approved the company’s acquisition by Chinese peer Qingdao Doublestar after a standoff that went down to the wire, saving South Korea’s No. 2 tire maker from a likely bankruptcy.

The Kumho labor union voted Friday night in favor of the 646.3 billion won ($607 million) deal, which would give Doublestar a 45% stake in the company. Kumho’s creditors had set a deadline of Friday for labor to accept the plan, after which the deal would have been scrapped.

Read the source article at Nikkei Asian Review

Kumho unveils two commercial tires for North American market

ATLANTA—Kumho Tire USA Inc. has introduced a pair of commercial trailer tires for the North American market, the KLT12e and KRT12.

Read the source article at Rubber and Plastics News

China’s Doublestar Takes Control of Kumho Tire

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China’s Qingdao Doublestar Co. Ltd. has agreed to invest 646.3 billion won ($597.4 million USD) for a 45% stake in South Korea’s Kumho Tire Co. Inc, multiple news outlets reported at the beginning of March.

According to a statement filed with the Shenzhen stock exchange, China’s Qingdao Doublestar Co Ltd’s parent company will buy 129.3 million ordinary shares in Kumho Tire, becoming the controlling shareholder in the debt-ridden South Korean tire maker, Reuters reported.

Read the source article at Tire Review