South Korea’s Kumho Tire Partners with Blatco in Saudi Arabia
South Korea’s Kumho Tire has announced a technology licensing agreement with Blatco, a tire company based in Saudi Arabia. This collaboration comes as Saudi Arabia solidifies its position as the largest automobile consumer and import country in the Middle East. Over the next two decades, Kumho will share its tire production technology with Blatco, with a primary focus on meeting the demand for passenger vehicle tires.
In line with Saudi Arabia’s ambitious Vision 2030, Blatco plans to expand its factory in the western industrial complex to cover an area of 281,000 square meters by 2027. This expansion aims to boost Blatco’s mobility business, allowing for increased tire production and sales across the Middle East, especially in the Saudi market.
The signing of this agreement took place at the Kumho R&D Center in Yongin, Gyeonggi Province, underlining the importance of this international partnership. Adel Almasood, the CEO of Blatco, expressed his excitement about this collaboration and its potential to redefine the tire industry in the Middle East. Almasood added that the partnership with Kumho Tire would usher in a new era of innovation and quality in mobility solutions.
This collaboration not only demonstrates Kumho’s commitment to advancing tire production technology but also represents a significant step in the growth of the Middle East’s automotive industry. Kumho Tire CEO Jeong Il-taik emphasized the strategic importance of the Saudi market in their expansion plans. According to Jeong, the partnership with Blatco will not only showcase Kumho’s cutting-edge technology but also pave the way for a long-term collaboration that contributes to the growth of the automotive industry in the region.
In addition to this agreement, Kumho Tire also signed a memorandum of understanding to establish a tire joint venture at the Korea-Saudi Smart Innovation Growth Forum in 2022. This further highlights Kumho Tire’s dedication to expanding its presence in emerging markets and staying at the forefront of tire production technology.
Overall, this partnership between Kumho Tire and Blatco is set to drive innovation and quality in the Middle East’s tire industry, responding to the increasing demand for passenger vehicle tires in Saudi Arabia and across the region. This collaboration aligns with Saudi Arabia’s Vision 2030 and positions both companies for long-term success and growth.
Analyst comment
This is positive news for both Kumho Tire and Blatco. The collaboration will allow Kumho to share its tire production technology with Blatco, meeting the growing demand for passenger vehicle tires in Saudi Arabia and the Middle East. Blatco’s expansion plans and the establishment of a tire joint venture highlight the commitment of both companies to innovation and growth in the region. This partnership aligns with Saudi Arabia’s Vision 2030 and signals long-term success for both companies in the Middle East’s automotive industry. Expect increased tire production and sales in the Saudi market.
