Kumho Tire, South Korea’s largest tire manufacturer and one of the top 10 global tire producers, is considering Serbia as a potential location for its first factory in Europe.
The company has shortlisted Poland, Serbia and Portugal as candidates and is actively evaluating them.
Kumho plans to complete the European factory within two years, investing over $703 million by 2027.
The final decision will factor in geopolitical and trade issues, including the 25% U.S. tariffs on auto parts.
The new factory aims to reduce logistics costs and strengthen Kumho’s presence in the premium tire market in the region.
Kumho expects the European plant to meet demand from major European carmakers amid transport disruptions at the Red Sea.
The company has supply agreements with major European automakers like Volkswagen Group, BMW, and Mercedes-Benz, and hopes local production will help secure more contracts with premium brands.
Currently, Kumho operates eight tire factories in South Korea, China, the U.S., and Vietnam. The European factory would be its ninth.
Founded in 1960, Kumho produces a wide range of tires for cars, vans, trucks, and even military aircraft, and serves over 160 countries worldwide.
