Summary of Proposed Investment
Project Number
21513
Company Name
Nanjing Kumho Tire Co., Ltd.
Date SPI Disclosed
Sep 26, 2003
Country
China
Industry
Manufacturing
Projected Board Date
Oct 31, 2003
Status
Completed
Sector
Automotive Tires
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Dec 22, 2003
Signed : May 13, 2004
Invested : Dec 29, 2004
Project Description
Nanjing Kumho Tire Company Limited (the company or NKT) is a company based in Nanjing, China that produces tires for passenger cars, trucks and buses. Total revenues for 2002 were approximately $115 million. The Company was formed in 1994 as a joint venture between Korea Kumho Tire Co., Ltd. of Korea, local Chinese partners and a consortium of investors. IFC financed the initial green-field project and is now contemplating the financing of the expansion.
The company’s current nameplate capacity is 3 million tires per annum, which is insufficient for them to meet demand. In 2002, the company produced almost 5 million tires, by increasing its working days and shifts, optimizing process flow and substituting bias tire production capacity with radial tire production. The project is to expand the company’s nameplate capacity to 8 million tires per annum, with expectations that it can produce up to 10 million tires on the equipment.
The company has a 12% share in the national radial tire market share with strong penetration in the south and east regions of China. The expansion project will enable to company to meet ongoing demand for tires, and also to produce to a quality standard adequate to meet the requirements of the most advanced OEM customers in China. NKT will also continue to export a portion of its tires. The company has had strong financial results in recent years, and intends to finance a portion of the project through internally generated cash flow.
The company’s current nameplate capacity is 3 million tires per annum, which is insufficient for them to meet demand. In 2002, the company produced almost 5 million tires, by increasing its working days and shifts, optimizing process flow and substituting bias tire production capacity with radial tire production. The project is to expand the company’s nameplate capacity to 8 million tires per annum, with expectations that it can produce up to 10 million tires on the equipment.
The company has a 12% share in the national radial tire market share with strong penetration in the south and east regions of China. The expansion project will enable to company to meet ongoing demand for tires, and also to produce to a quality standard adequate to meet the requirements of the most advanced OEM customers in China. NKT will also continue to export a portion of its tires. The company has had strong financial results in recent years, and intends to finance a portion of the project through internally generated cash flow.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Kim Chang Nyun, Director, President
Nanjing Kumho Tire Company Limited
418 Heyan Road
Nanjing
Jiangsu, China
Phone: (025) 531999 - 8001
Nanjing Kumho Tire Company Limited
418 Heyan Road
Nanjing
Jiangsu, China
Phone: (025) 531999 - 8001