Kumho gets approval to sell civil aircraft tires
RANCHO CUCAMONGA, CA (February 28, 2008)… Kumho Tire Co. Inc has gained a foothold in the export of tires for civil aviation via a Bilateral Aviation Safety Agreement (BASA) between Korea and the United States.
At an event at the American embassy in Singapore on February 19, Kumho president Sae Chul Oh signed the BASA, along with representatives from the U.S. Federal Aviation Administration (FAA), the Korea Aerospace Research Institute and other aviation-related representatives.
A BASA is a tool the United States uses to assess, approve and maintain surveillance of the technical quality and performance levels of the civil aviation industry in other countries, and it is a necessary part of being able to export products for use abroad. Companies from non-BASA countries cannot conclude agreements with prospective American trading partners, even if they can demonstrate the safety levels and technical excellence of their civil aviation parts.
Approximately five companies in world have been able to successfully commercialize tires for use in the civil aviation industry. Entering the market is difficult, given the levels of investment and advanced technology required during the early developmental phase. Tires used in the civil aviation industry need to conform to much higher safety standards than those produced for general purpose use.
According to the data from the Korean Ministry of Commerce, Industry, and Energy (MCIE), the scale of the global aviation industry continues to increase steadily, with the market estimated to be U.S. $134 billion by 2015.
With a BASA now secured, Kumho Tires is working on plans to expand its business activities toward the global marketplace, establishing strategies for commercialization and forming detailed investment plans and specialized organizations within the group related to the manufacture of tires used in the civil aviation industry.
A spokesman for Kumho Tires said the company would now gain a foothold in the supply of civil aviation tires to local and foreign airlines. The spokesman also said the company expects the BASA certification to help provide recognition of Kumho’s technological excellence both domestically and abroad.
Kumho expects to achieve 5% or more of the civil aviation tire market by 2015. The company’s first customer will be Asiana Airlines, a subsidiary of Kumho Asiana Group.
