S Korea Kumho Tire Gwangju plant shut after fire

SINGAPORE (ICIS)–A fire broke out at South Korea-based tire manufacturer Kumho Tire at its Gwangju plant in the south of the country on 17 May, suspending operations at the plant.

The fire, which took place at the company’s Plant 2, broke out at 7am local time (22:00 GMT) and firefighters were dispatched, with containment levels at over 90% by 18 May, according to South Korea’s National Fire Agency.

Kumho Tires issued an apology on 18 May and said it is working with the fire department “and other relevant authorities” to extinguish the fire.

It is also investigating how the blaze started.

“We … are responding systematically and responsibly to all procedures, including damage recovery, resident protection, and cooperation with relevant authorities,” Kumho Tire said.

“The expected date of production resumption and other changes will be re-announced as details are confirmed,” said Kumho Tire in a bourse statement on 19 May.

The Gwangju plant accounts for 19.7% of Kumho Tire’s total global capacity, the company said.

Demand losses for raw materials such as synthetic rubbers – an important component for tires – may be contained as the company is expected to raise operating rates at other sites to minimize disruptions as a result of the fire, market sources said.

Kumho Tire is considering plans to substitute Gwangju plant production by utilizing its Gokseong plant as well as plants located overseas, sources said.

Additional reporting by Ai Teng Lim