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????The acquisition deal of South Korea KUMHO Tire by Qingdao Double Star has been eventually accomplished recently. On 24 April, Qingdao Company Double Star received the notice from accreditors of KUMHO Tire that they would not exercise their managerial control. That means the accreditors have given up their privilege rights of acquisition, Qingdao Double Star thus becomes the purchaser. The deal will be the 2nd overseas tire company acquisition made by the Chinese company next to the acquisition of Italian PERELLI by SinoChem after business transaction completed.

????The acquisition of South Korean KUMHO Tire by Qingdao Double Star is a normal business activity between Chinese and South Korean enterprises. According to experts, it has chosen a proper timing at the same time abiding international established laws and regulations. As a result, not only Double Star will achieve growth, it also will expand market position and influence of Chinese tire in global market.

????According to Double Star, it takes over one year from public offering of KUMHO Tire stocks to receiving formal business transaction notice. “The most urgent matter currently is to bring healthy and fast growth to KUMHO Tire. Only this way can guarantee the benefits of stock holders, employees, companies, especially Chinese market users, suppliers, and partners to the largest extend.”

????KUMHO Tire, enjoying 57 years history, is the 2nd largest tire company in South Korea. It established 5 R&D centers in South Korea, China, US and Euro region, as well as 8 plants in South Korea, China, US and Vietnam. It once was one of Top 10 tire companies in the world, and also is the only company in South Korea producing flight jet tire.

????The Chinese market is the most problematic market of KUMHO Tire. Qingdao Double Star will fully leverage its position, advantages and influence in Chinese tire market, and experience in company transition and smart manufacturing to make KUMHO Tire into a high-end brand in Chinese market. Double Star plans to put KUMHO Tire’s advantaged products such as SUV tire, new energy sedan tire, snow land tire and racing auto tire into mass production as soon as possible and promote in the market. The tire plant in China of KUMHO Tire is expected to continue production to fully meet local clients’ demands. In addition, Double Star will make strategies for Euro, Middle African markets to establish new manufacturing bases while fully play existing manufacturing capacities. (Lin Gang)