Korea Development Bank, a state-run creditor bank of Kumho Tire, said on March 2 it will reattempt to sell the tire maker to China’s Qingdao Doublestar.
The fate of Kumho Tire was thrown into uncertainty after a deal to sell a majority stake in the tire maker to the Chinese company collapsed last September over price differences and other issues.
KDB's announcement comes after the Korean tire maker’s management and labor union failed to agree on a viable turnaround plan.
KDB said it will seek to attract 646.3 billion won (US$597.40 million) from the Chinese company by selling a majority stake in Kumho Tire.
The labor union of Kumho Tire has fiercely opposed selling the country’s No. 2 tire maker to a foreign company. Still, a deal to sell Kumho Tire to Qingdao Doublestar needs the government’s approval.
Qingdao Doublestar exports to over 140 nations worldwide. Its supplies to major auto companies include Caterpillar, Hyundai, Komatsu, Volvo and BYD.
By Song Seung-hyun and newswires (email@example.com