Kumho Tire has signed a technology export agreement with Black Arrow Tire Company (Blatco) of Saudi Arabia.
On February 28, Kumho Tire CEO Jeong Il-taik signed the agreement at Kumho Tire's Yongin Central Research Center in Yongin, Saudi Arabia, in the presence of Sami Al Sadhan, Saudi Arabia's ambassador to South Korea, Abdullah Alwahibi, chairman of Blatco, and Abdulaziz al Orini, vice chairman of Blatco.
Under the agreement, Kumho Tire will provide Blatco with technology for the production of passenger tires sold in Saudi Arabia and the rest of the Middle East for 20 years.
The agreement with Kumho Tire is part of Blatco's commitment to manufacturing in line with the Saudi government's Vision 2030 policy, which aims to complete and start production of an 85,000 square meter tire plant in the Kingdom's Western Industrial Zone by 2027. Blatco plans to expand its mobility business by producing and selling tires in Saudi Arabia and other Middle Eastern markets.
"Saudi Arabia is the largest automotive tire market in the Middle East and is preparing for the future by increasing investment in manufacturing," said CEO Jeong. "Kumho Tire's technology export contract to Blatco in Saudi Arabia demonstrates our technological competitiveness and lays the foundation for future production and sales growth through strategic partnerships in the Middle East market. We expect this agreement to be a cornerstone of the development of the Saudi and Middle Eastern automotive industry and markets through long-term partnerships, not limited to technology exports."
"We have finalized a technology export agreement with Kumho Tire to implement the project and plan to start construction work on the plant next year," said Adel Almasood, CEO of Blatco. "We look forward to partnering with Kumho Tire to develop and produce quality and technologically advanced products."
Meanwhile, Kumho Tire attended the "Korea-Saudi Smart Innovative Growth Forum" held in Saudi Arabia in 2022 and signed an MOU to establish a tire joint venture.
