Kumho Tire Co., South Korea's second-largest tire maker, said Tuesday it will sell its natural rubber processing plant in Vietnam to focus on its core business.Kumho Tire said it has struck a deal with a joint venture between Korean automaker Hyundai Motor Co. and Thanh Cong Group of Vietnam to sell its rubber factory.
It plans to finalize the deal by May.The company opened the US$4 million factory in southeastern Vietnam in 2007, which can supply rubber for 6 million tires a year.
The tire maker has been grappling with shrinking sales amid the COVID-19 pandemic and worsening profit due to a hike in raw material prices.The deal comes as the U.S. Department of Commerce is moving to slap anti-dumping duties on tire makers of four Asian nations, including South Korea, later this year.In October, Kumho Tire signed a deal with a Pakistani tire company to sell its truck and bus radial tire plant in China.
