SEOUL, South Korea—Kumho Tire Co. Inc. has agreed to supply manufacturing-related technology to Black Arrow Tire Co. (Blatco), a Saudi Arabia enterprise planning to build a tire plant in that country.
Under the 20-year deal, Kumho will provide Blatco with technology necessary for the production of passenger tires sold in the Middle East, including Saudi Arabia.
Blatco plans to build a 915,000-sq.-ft. factory in a western Saudi industrial complex by 2027. Blatco said the factory will have a production capacity of 7.5 million passenger, SUV, truck/bus and aircraft tires a year in its first phase. Blatco said eventually the plant could produce 15 million units a year.
According to Kumho, Blatco's project has "strong support" from the Saudi government as part of the country's "Vision 2030 policy" that aims to diversify the Saudi economy. The country is preparing for the future by strengthening investment in manufacturing, Kumho said.