April 27, 2024

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A signing ceremony between Kumho Tire and Blatco was held on Feb.28. (Yonhap)

Kumho Tire, South Korea's second-largest tire maker, said Monday it has forged a technology licensing agreement with Saudi Arabian tire maker Blatco.

Under the agreement, Kumho Tire will provide Blatco with technology support for the production of passenger car tires sold in Saudi Arabia and the Middle East for the next 20 years, the South Korean company said.

The deal was reached as a follow up to a memorandum of understanding signed between the two companies to establish a joint tire venture at the South Korea-Saudi Arabia Smart Innovative Growth Forum held in 2022.

Supported by the Saudi government's Vision 2030 policy, Blatco aims to complete an 85,000-square-meter tire factory in the country's western industrial zone by 2027.

Kumho Tire CEO Jung Il-taik said, "the company will demonstrate our technological competitiveness and establish a growth base in the Middle Eastern market." (Yonhap)