[Photo provided by Hankook Tire Co.]
South Korea’s leading tire maker Hankook Tire Co. will exclusively supply city bus tires to China’s largest private bus company Jumbo Bus Group, a move that is expected to lead the Korean tire maker to win new tire orders in China.
The Korean company said on Monday that it has signed a memorandum of understanding (MoU) with Jumbo Bus Group to supply its tire model dubbed Singda for city buses as its sole supplier. The value of the deal is not disclosed.
Established in 1995, Guangdong Province-based Jumbo Bus Group is China’s biggest private bus company, running six city bus companies, an auto part business and a city bus advertising agency. About 560 million people use its 4,500 buses on 187 routes every year.
Following the latest deal, the Korean tire maker is expected to expand its foothold in the world’s largest auto market. As Jumbo Bus Group plans to replace all of its existing LNG-fueled city buses in Guangzhou with electric buses over the next three years, Hankook Tire is aiming to launch tires for electric buses and expand its presence in the EV market in China.
The Korean tire maker started delivering its passenger car tires to China in 1994 and has been manufacturing and selling truck and bus tires since 2002.
“We’ll strengthen the strategic partnership with China’s transportation companies to enhance our presence in the global market,” said an official at Hankook Tire.
Hankook Tire stocks Monday ended 1.7 percent up at 53,700 won from the previous session.
By Kim Jung-hwan and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]