Kumho Tire said Tuesday it will sell its natural rubber processing plant in Vietnam to focus on its core business.

The second-largest tire maker in South Korea said it has struck a deal with a joint venture between Korean automaker Hyundai Motor and Thanh Cong Group of Vietnam to sell its rubber factory. It plans to finalize the deal by May.

The company opened the $4 million factory in southeastern Vietnam in 2007, which can supply rubber for 6 million tires a year. 

The tire maker has been grappling with shrinking sales amid the COVID-19 pandemic and worsening profit due to a hike in raw material prices. 

The deal comes as the US Department of Commerce is moving to slap anti-dumping duties on tire makers of four Asian nations, including South Korea, later this year. 

In October, Kumho Tire signed a deal with a Pakistani tire company to sell its truck and bus radial tire plant in China. (Yonhap)