|
|
 |
 Kumho agrees sale of Tire Business Unit |
|
|
Kumho Industrial Co., Ltd. has announced that it has agreed to sell its Tire Business Unit for the sum of KRW 1.428 trillion (US$ 1.2 billion). The Tire Business Unit will be acquired by a new joint venture company whose principal shareholder will be South Korea's military pension fund, the Military Mutual Aid Association (MMAA).
The new joint venture company is to be established during June with KRW 500 billion (US$ 410 million) of paid-up capital. The MMAA will own 50 per cent of the company with Kumho Industrial taking a 30 per cent stake. The remaining 20 per cent will be distributed between several smaller investors.
Mr Shin, president and CEO of Kumho Industrial Co., Ltd., commented:
"I am delighted that we have been able to conclude this excellent
contract with the Military Mutual Aid Association.
"The new company will have a very healthy financial structure which will enable us to forge ahead with our strategy of developing the image and awareness of Kumho as a technology-driven, ultra high performance brand using motorsport as the prime means of showcasing our products. Our existing management structure will remain in place both domestically and within our overseas sales companies. Indeed, the only changes I foresee in the future will be positive ones as we continue to develop our business activities and become a leader in the global tyre market," he concluded.
Established in 1960, Kumho Industrial Co., Ltd. is ranked as the world's 10th largest tyre manufacturer* and exports a full range of tyres to more than 160 countries throughout the world. In 2002 the company's Tire Business Unit recorded sales of KRW 1.473 trillion (US$ 1,208 billion) and employed 5,200 people. Kumho Industrial Co., Ltd., whose business operations include transportation and construction, is part of the Kumho Group.
* Source: Tire Business/European Rubber Journal |
|
|
|
|
