South Korea's Kumho Tire announced Monday a technology licensing agreement with Blatco, a tire company based in Saudi Arabia, the largest automobile consumer and import country in the Middle East.

Under the deal, Kumho will provide its tire production technology to Blatco for the next two decades, focusing on tires for passenger vehicles.

In alignment with Saudi Arabia's Vision 2030, Blatco is set to expand its factory in Saudi Arabia's western industrial complex to 281,000 square meters by 2027.

In addition, Blatco is pioneering efforts to bolster its mobility business, enabling it to increase tire production and sales across the Middle East, with a particular focus on the Saudi market.

The formalization of this agreement took place at the Kumho R&D Center in Yongin, Gyeonggi Province, attended by key figures such as Kumho Tire CEO Jeong Il-taik, Saudi Arabian Ambassador to South Korea Sami M. Alsadhan, and Blatco Chairman Abdullah Alwahibi, underscoring the significance of this international collaboration.

"By harnessing Kumho Tire's renowned technological capabilities, we are set to embark on a journey to redefine the tire industry in the Middle East, marking a new era of innovation and quality in mobility solutions," Adel Almasood, CEO of Blatco remarked.

The collaboration showcases Kumho Tire's dedication to advancing tire production technology and its strategic approach to lead and expand in emerging markets, marking a significant phase of growth within the Middle East's automotive industry.

"Saudi Arabia is a key market in our strategic expansion in the Middle East, and this collaboration with Blatco will not only demonstrate our leading-edge technology but also pave the way for a long-term partnership contributing to the automotive industry's growth in the region," Jeong highlighted the importance of the ties with Saudi Arabia.

Meanwhile, Kumho Tire signed a memorandum of understanding to establish a tire joint venture at the Korea-Saudi Smart Innovation Growth Forum in 2022.