Kumho Tire fire losses could total hundreds of billions of won

Kumho Tire fire losses could total hundreds of billions of won

최초입력 2025.05.19 10:48:07

(Yonhap)

A major fire at Kumho Tire’s Gwangju plant, which accounts for about 20 percent of the company’s global tire production, has forced a complete shutdown and is expected to result in revenue losses worth hundreds of billions of dollars. Due to the fire that was centered on the No. 2 factory, which houses the critical rubber compounding process, more than half the facility was burnt down ndnd there is no timeline for resuming production.
According to firefighting authorities and industry sources on Sunday, the fire broke out on Saturday morning around 7 a.m. in the rubber compounding building at the plant’s western wing. As of 8 a.m. Sunday, 50 to 60 percent of the No. 2 facility was consumed by flames.
The affected process mixes raw materials such as synthetic rubber, natural rubber, and carbon black with heat and pressure. The building, which was roughly the size of a soccer field, contained 20 tons of rubber, most of which are flammable chemical compounds and fueling the rapid spread of the blaze. Kumho Tire CEO Jung Il-taek visited the site on Sunday and apologized, saying the company “will do its best to minimize inconvenience to nearby residents.”
Kumho Tire manufactures 63 million tires annually, with its three domestic factories in Gwangju, Gokseong, and Pyeongtaek producing about 27 million units. The Gwangju plant alone manufactures around 12 million tires per year or 33,000 daily. Although the No. 1 factory suffered minimal damage, the halted operations at the heavily damaged No. 2 plant have brought the entire Gwangju facility to a standstill.
The plant mainly supplies tires for Hyundai Motor and Kia vehicles, including both original equipment (OE) and replacement units. It also serves as a major export base. While firefighting efforts reached an 80 percent containment rate by 4 p.m. Sunday, full production is unlikely to resume soon. A similar fire at Hankook Tire’s Daejeon plant in 2023 took 58 hours to extinguish and required six months before operations resumed.
Kumho Tire is considering reallocating production to its Gokseong and Pyeongtaek plants if the shutdown continues. However, both facilities are already operating near full capacity, making additional output uncertain.
Automakers say they are not immediately affected, citing sufficient tire inventories. A Kia Gwangju plant official noted the company sources from multiple suppliers and has adequate stock. Gwangju Global Motors, which builds Hyundai’s Casper and its electric variant, sources all its OE tires from the Gokseong plant and reportedly holds 3,000 units for internal combustion models and 2,000 each for 15-and 17-inch EV tires.
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Kumho Tire fire losses could total hundreds of billions of won

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