MACON, Ga. (AP) — A tire plant planned to open in Bibb County next year is part of a South Korean tire company's goal to become the world's fifth-largest tire maker by 2015.
Last month, Kumho Tire Co. announced it would build the 1.3 million-square-foot plant, the company's first manufacturing plant outside Asia, in southern Bibb County. Construction is expected to begin in May with production to start in October 2009.
The new plant is expected to create 450 jobs and the company is expected to make a $225 million investment in the plant. The company is expected to bring 15 workers and their families to help get the plant running, said Pat Topping, senior vice president of the Macon Economic Development Commission.
The company's plan to double its presence in the tire-making market by moving from 10th largest to fifth-largest is ''a very aggressive goal for us,'' said Kumho spokesman Dan Davis said.
''We have grown very rapidly here in the U.S. in the last five or six years,'' Davis said.
Davis said the Kia automobile plant being built in West Point played into Kumho's decision to locate its tire plant in Bibb County because the company supplies tires to Kia, Davis said.
Kumho opened its U.S. headquarters and 830,000 square-foot central distribution center in 1975 in California. It has other distribution facilities in Atlanta, Chicago, Dallas and Columbus, Ohio.
Kumho Tire is a subsidiary of large South Korean conglomerate Kumho Asiana Group. The Bibb County plant is expected to make 2.1 million tires a year for passenger cars and trucks during its first phase and 3.15 million tires during its second phase if its market share increases as expected, Davis said.
The Bibb County plant will not only make replacement tires but also will be a tire supplier to major car makers in the United States, company president and CEO Sae Chul Oh said in January.
''Kumho Tire's new plant will be able to materially benefit U.S. automakers by reducing their import customs duty from overseas plants as well as related logistic costs,'' Oh said.
Topping said other businesses likely will follow Kumho.
''I knew it was a true manufacturing company and would also have associate companies that would be required to locate fairly close to supply them with raw materials,'' he said. ''There is up to five suppliers (Kumho) has told us about. We are trying to set up meetings with them in Korea in the next couple of months.''
