Tidco, Korean Firm Kumho In Tyre Venture

The joint venture company to be formed in the escort sector with Tidco holding 1 per cent while Kumho will hold 51 per cent of the equity.

The state government has allotted 100 acres of land for the plant in Arakkonam.About 40 per cent of the investment will come as equity.

The Arakkonam plant will have a capacity of a million radial tyres a year and will cater to both the domestic and local markets.

Kumho Tire Company is part of the Kumho group which has interests in airlines, ground transportation, construction, petrochemicals, telecom, finance, tourism and sports.

Combined turnover of the group has been estimated at Rs 20,000-crore for the current year and is expected to touch Rs 70,000-crore by the turn of the century.

 

At present, Kumho has two tyre manufacturing facilities in Korea, one of which is the biggest single largest tyre production unit in the world with an installed capacity of 30 million tyres per annum.

Commercial production is expected to commence by end-1988.