ID :
169949
Tue, 03/22/2011 - 11:44
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https://www.oananews.org//node/169949
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Kumho Tire decides to recall faulty products in China
By Kim Young-gyo- HONG KONG, March 22 (Yonhap) -- South Korea's Kumho Tire Co. has decided to recall its problematic products in China a few days after a news broadcaster aired a program claiming some of its products are defective, Chinese media reported Tuesday.
Last week, state-run China Central Television (CCTV) reported that too much recycled rubber was used in the tires produced at the Tianjin plant of Kumho Tire, the leader in the Chinese tire market.
The excessive use of the recycled material could reduce manufacturing costs, but could also cause tires to rupture and pose other safety risks, according to the CCTV report.
The company's internal regulation limits the proportion of the use of recycled rubber to be 20 percent or under.
The Beijing Times said Lee Han-seop, head of Kumho's China subsidiary, publicly apologized to Chinese consumers on a CCTV program on Monday, vowing to recall all of its faulty products. Details of when or how the company will recall the products were not disclosed.
Kumho has suspended its production in the Tianjin factory to cope with an investigation by the Chinese quality inspection authorities. It was reported to have fired managers there.
The South Korean company entered the China market in 1994 and has been the No. 1 tire maker in China since then. It also has factories in the Chinese cities of Nanjing and Changchun.
The tire maker supplies the Chinese ventures of General Motors Co., Hyundai Motor Co., Peugeot Citroen Automobile Co. and Volkswagen AG. as well as China's homegrown Great Wall Motor Co. and Hafei Automobile Industry Group.
China, which has topped the U.S. as the world's biggest auto market, makes up 30 percent of Kumho's global sales, becoming one of Kumho's major growth drivers.
Other global tire makers, such as Bridgestone Corp., Goodyear Tire & Rubber Co. and Michelin Group, have also enjoyed strong sales in China thanks to robust automobile sales there.
Last week, state-run China Central Television (CCTV) reported that too much recycled rubber was used in the tires produced at the Tianjin plant of Kumho Tire, the leader in the Chinese tire market.
The excessive use of the recycled material could reduce manufacturing costs, but could also cause tires to rupture and pose other safety risks, according to the CCTV report.
The company's internal regulation limits the proportion of the use of recycled rubber to be 20 percent or under.
The Beijing Times said Lee Han-seop, head of Kumho's China subsidiary, publicly apologized to Chinese consumers on a CCTV program on Monday, vowing to recall all of its faulty products. Details of when or how the company will recall the products were not disclosed.
Kumho has suspended its production in the Tianjin factory to cope with an investigation by the Chinese quality inspection authorities. It was reported to have fired managers there.
The South Korean company entered the China market in 1994 and has been the No. 1 tire maker in China since then. It also has factories in the Chinese cities of Nanjing and Changchun.
The tire maker supplies the Chinese ventures of General Motors Co., Hyundai Motor Co., Peugeot Citroen Automobile Co. and Volkswagen AG. as well as China's homegrown Great Wall Motor Co. and Hafei Automobile Industry Group.
China, which has topped the U.S. as the world's biggest auto market, makes up 30 percent of Kumho's global sales, becoming one of Kumho's major growth drivers.
Other global tire makers, such as Bridgestone Corp., Goodyear Tire & Rubber Co. and Michelin Group, have also enjoyed strong sales in China thanks to robust automobile sales there.
