Kumho Tire said on Sept. 27 that it signed a tire manufacturing technology export contract with Century Engineering Industries of Pakistan.
With the deal, Kumho Tire will support technologies necessary for tire manufacture for Century Engineering for 10 years by September 2028.
Kumho Tire will receive an initial $5 million in technology transfer fees and 2.5 percent of its sales in the future in running royalty. The contract will be renewed every five years after the end of the first contract period.
Century Engineering has been pushing to establish a tire factory with new business since May last year. In order to secure manufacturing technology, it selected Kumho Tire in recognition of its high technology during transactions with global tire manufacturers. Its goal is to produce up to 5 million tires starting from 1 million units per year in the short term.
Kumho Tire plans to provide all the know-how necessary to manufacture tires from design to standards, quality and evaluation, not to mention technology.
Kumho Tire Chairman Kim Jong-ho said, "The technology export deal is a proof that Kumho Tire, which has been called the master of technology, has wiped out the public`s concerns over the sale for some time and its quality and technical skills are still intact."