July 1, 2014 / 2:15 AM / in 4 years

Kumho Tire says to resume construction of $413 mln U.S. factory

SEOUL, July 1 (Reuters) - South Korean tyre marker Kumho Tire said on Tuesday it plans to invest $413 million to build its first factory in the United States to cater to demand from Hyundai Motor Co and other global automakers.

Kumho Tire said it would resume construction of the plant in Georgia, which broke ground in 2008 only to be put on hold due to the global financial crisis.

The factory would be completed in early 2016 and would have annual capacity of about 4 million tyres.

Kumho, which has been under a debt restructuring programme since 2009, said its creditors had approved the factory plan.

Kumho’s crosstown rival Hankook Tire Co Ltd also plans to spend $800 million on building its first U.S. factory, aiming to begin production on the plant in Tennessee in 2016. (Reporting by Hyunjoo Jin; Additional reporting by Joyce Lee; Editing by Stephen Coates)

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