Doublestar Chairman Chai Yongsen is ready to speak at a news conference in Seoul. [Yonhap News Photo]
SEOUL -- The head of China's Doublestar offered Thursday to invest and nurture Kumho Tire as an internationally viable tire maker controlled by professional managers if its union accepts his ownership.
Doublestar Chairman Chai Yongsen said in a news conference in Seoul that he would allow Kumho Tire's autonomy, dismissing concerns about a technology leak. "The purpose of acquiring Kumho Tire is not to own it or to take out technology, but to become a partner," he said.
Chai called for an early settlement of disputes over the proposed sale of a 45-percent stake in Kumho Tire to the Chinese company. Creditors have warned of court receivership unless Kumho Tire presents a self-rehabilitation package including the union's consent on the proposed sale of a controlling stake to Doublestar by the end of this month.
"I will wait patiently, but I can not wait indefinitely," Chai said, adding Doublestar is ready to respect all agreements between management and union, including a three -year job guarantee.
He described Doublestar's ownership as a win-win deal, saying Kumho Tire would focus on mid and high-end tires for passenger vehicles while Doublestar specializes in mid and low-end tires for trucks and buses.
In March last year, Doublestar signed a share purchase agreement to secure a 42.01 percent stake in Kumho Tire, but the deal broke down because of disputes over job security, the use of Kumho's brand, a proposed cut in prices, and the union's objection among other things.
Kumho Tire was put under a debt workout program in December 2009 due to a severe liquidity crunch. It graduated from the program in late 2014, but the company's crisis has been aggravated by poor sales in China and mismanagement by its former owner, Kumho Asiana Group.
"I will wait patiently, but I can not wait indefinitely," Chai said, adding Doublestar is ready to respect all agreements between management and union, including a three -year job guarantee.
He described Doublestar's ownership as a win-win deal, saying Kumho Tire would focus on mid and high-end tires for passenger vehicles while Doublestar specializes in mid and low-end tires for trucks and buses.
In March last year, Doublestar signed a share purchase agreement to secure a 42.01 percent stake in Kumho Tire, but the deal broke down because of disputes over job security, the use of Kumho's brand, a proposed cut in prices, and the union's objection among other things.
Kumho Tire was put under a debt workout program in December 2009 due to a severe liquidity crunch. It graduated from the program in late 2014, but the company's crisis has been aggravated by poor sales in China and mismanagement by its former owner, Kumho Asiana Group.
reporter
Lim Chang-won
cwlim34@ajunews.com
