ID :
172682
Sun, 04/03/2011 - 10:41
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Shortlink :
https://www.oananews.org//node/172682
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Kumho Tire to recall more than 300,000 tires in China
By Kim Young-gyo
HONG KONG, April 3 (Yonhap) -- South Korea's Kumho Tire Co. has decided to recall 302,673 tires produced at its factory in the northern Chinese city of Tianjin from 2008 to early 2011, starting on April 15.
According to China's General Administration of Quality Supervision, Inspection and Quarantine on Friday, the South Korean tiremaker has admitted that it did not meet its internal regulation, which limits the proportion of the use of recycled rubber to be 20 percent or under.
The company, therefore, has decided to recall the problematic tires for free, the Chinese ministerial-level department said in a statement.
Last month, 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.
Lee Han-seop, head of Kumho's China subsidiary, publicly apologized to Chinese consumers on a CCTV program, a few days after the news broadcaster aired the program.
Kumho suspended its production at the Tianjin factory to cope with an investigation by the Chinese quality inspection authorities. The company was reported to have fired managers at the plant.
South Korean firms operating in China have shown concerns that the incident might negatively affect other South Korean firms, officials here said.
"Kumho Tire might have been off its guard, as it has been the top tiremaker in China for a long time," an official at a China subsidiary of a South Korean conglomerate said, asking for anonymity.
"You can never be careless when operating a business, especially in a market like China."
The South Korean tire manufacturer has been the No. 1 tiremaker in China since entering the market there in 1994. It also has factories in the Chinese cities of Nanjing and Changchun.
The tiremaker 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 tiremakers, such as Bridgestone Corp., Goodyear Tire & Rubber Co. and Michelin Group, have also enjoyed strong sales in China thanks to robust automobile sales there.
HONG KONG, April 3 (Yonhap) -- South Korea's Kumho Tire Co. has decided to recall 302,673 tires produced at its factory in the northern Chinese city of Tianjin from 2008 to early 2011, starting on April 15.
According to China's General Administration of Quality Supervision, Inspection and Quarantine on Friday, the South Korean tiremaker has admitted that it did not meet its internal regulation, which limits the proportion of the use of recycled rubber to be 20 percent or under.
The company, therefore, has decided to recall the problematic tires for free, the Chinese ministerial-level department said in a statement.
Last month, 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.
Lee Han-seop, head of Kumho's China subsidiary, publicly apologized to Chinese consumers on a CCTV program, a few days after the news broadcaster aired the program.
Kumho suspended its production at the Tianjin factory to cope with an investigation by the Chinese quality inspection authorities. The company was reported to have fired managers at the plant.
South Korean firms operating in China have shown concerns that the incident might negatively affect other South Korean firms, officials here said.
"Kumho Tire might have been off its guard, as it has been the top tiremaker in China for a long time," an official at a China subsidiary of a South Korean conglomerate said, asking for anonymity.
"You can never be careless when operating a business, especially in a market like China."
The South Korean tire manufacturer has been the No. 1 tiremaker in China since entering the market there in 1994. It also has factories in the Chinese cities of Nanjing and Changchun.
The tiremaker 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 tiremakers, such as Bridgestone Corp., Goodyear Tire & Rubber Co. and Michelin Group, have also enjoyed strong sales in China thanks to robust automobile sales there.
