Through the technological tie-up, the two companies plan to jointly develop next-generation tires. If they combine their sales and R&D expenditures, they could rank No. 5 worldwide, having a potential to bring about a change in the landscape of the global tire industry.
Kumho Tire announced on December 2 that it formed a strategic alliance with Japan's Yokohama Rubber at Weihai Point in China, aimed at strengthening their global competitiveness. Under the terms of the alliance, the two parties will engage in joint development of eco-friendly and high-performance tires.
In addition to the technological tie-up, the two companies also formed an alliance to pool their financial resources, as part of an effort to compete heads-on with the world's big-three tire makers, including Bridgestone, Michelin, and Goodyear.
