Yokohama, Kumho open cooperation talks
Yokohama Rubber Co. Ltd. and South Korea's Kumho Tire Co. Inc. have agreed to discuss possible technology exchanges and cross ownership.
The two firms, the world's eighth and 12th largest tire makers, disclosed today they signed a memorandum of understanding on Nov. 29 covering the various aspects of their interest.
By exchanging technology, the companies «aim to increase their competitiveness and enhance their growth potential by sharing R&D resources and making more effective use of them through joint research and development on tires and related technologies», - Yokohama said.
The companies also plan to enter into a «capital alliance» based on cross-shareholdings.
Yokohama and Kumho Tire will start discussions on the details of the alliance—including methods for obtaining each other's shares, the size of shareholdings and the timing of acquisition—with the aim of signing a legally binding contract as early as possible.
Yokohama is the world's No. 8 tire maker with $5.57 billion in tire-related sales in 2012, while Kumho was ranked No. 12 with $3.6 billion, according to Tire Business' annual ranking of the world's largest tire companies.
Yokohama operates 12 tire plants in seven countries, while Kumho has eight plants in three countries.
Related items
-
DOT issues 22 new tire factory codes in 2016
The U.S. Department of Transportation issued 22 new DOT plant identification codes in the past year for tire factories worldwide, including 14 for plants in... Read more -
Hankook opens test center for winter tires in Finland
Hankook Tire Co. Ltd. has opened its European winter tire test facility in Ivalo, Finland. Named Technotrac, the testing center is located about 185 miles north of the Arctic... Read more -
Yokohama Rubber unveils centennial logomark
In less than 11 months, Yokohama Rubber will achieve the venerable age of... Read more -
ATG’s Constellation truck tyre brand not coming to Europe, for now
Shortly after its acquisition by Yogesh Mahansaria and private equity company Warburg Pincus in 2007, the Alliance Tire Group (ATG) exited the car and truck tyre market and began building up a strong reputation as an off-road tyre... Read more -
Trio of Kumho tyres aim to provide broad 4×4 market applicability
Kumho has enhanced its comprehensive 4×4 tyre range with the addition of the Crugen HP91, a high performance tyre for an SUV segment that has never been so... Read more
social