Kumho Tire (CEO Kim Chang-kyu) has recently announced that it will gradually move its production plants from this year to the end of 2016 to the Economic Development District in Nanjing City in China about 30 kilometers from the present location of its plants. Included in the moving plan are the PCR Plant where tires for sedan cars are produced and the TBR Plant where tires were made for cargo trucks and buses.
The relocation move is in accordance with the city development plans of the Nanjing City Government to move industrial facilities from the heart of the city to the new industrial park.
Prior to the decision to implement the relocation plan, there had been negotiations between the competent government authorities of the Nanjing City and the affected business companies.
In the case of Kumho, negotiations started in 2011 concerning the relocation plan and an agreement was reached by the end of 2014 on various matters including compensations and final selection of the land lot for the new plant. (By Linda Yoon)