Kumho Tyre Australia Secures New Distribution Facility in Melbourne’s South-East

Kumho Tyre Australia has signed a 10-year lease for a new, 17,250 sqm industrial facility in Pakenham. The move to the Endeavour Road facility, developed by ESR, increases Kumho’s tyre storage capacity by 60 per cent and improves truck access for inbound and outbound distribution. Supply chain specialists TMX Transform managed the property procurement process on Kumho’s behalf.

Kumho Tyre Australia is part of Kumho Tyre, a global tyre manufacturer established in 1960 operates in more than 180 countries. Kumho has been operating in Australia for more than 40 years, supplying tyres to major national retailers including mycar, Tyrepower and Bob Jane T-Mart, alongside its own network of Platinum and Master Dealers, and distributes more than 1.8 million tyres annually from warehouses across the country.

Kumho’s move to Pakenham follows a period of sustained growth that saw demand outpace the capacity of its previous facility. The new site accommodates 60 per cent more tyre storage than before, along with six new dock provisions and a suspended 12.2 metre ceiling throughout, built to meet all the compliance requirements for tyre storage. An upgraded fire system has also been installed as part of the fit-out. The location was chosen in part for its proximity to where staff live, reducing travel time for the team compared with the previous site.

The deal also reflects a wider shift in Melbourne’s industrial property market, with occupiers increasingly looking beyond the core south-east corridor, where rents and outgoings remain comparatively high, toward outer south-east precincts such as Pakenham. This wider pattern indicates that tenants who are willing to relocate further from the city are reducing property costs.

Alan Knight, State Manager of Victoria/Tasmania at Kumho said:

“This new facility reflects the scale we’ve built in Australia over more than 40 years, and gives us the space and infrastructure to support that growth well into the future. Investing in our own distribution network has always been central to how we operate here, and Pakenham strengthens that further so we can keep tyres moving efficiently to our retail partners across the country. The location also makes a real difference for our team, cutting down travel time for staff and supporting the people behind our operations day to day.”

Daniel Kelly, Director of Property at TMX Transform spokesperson said:

“Kumho needed a site that matched their growth plans while solving some real operational challenges around storage and truck movements. We are proud to have helped address these challenges, while using the new site’s location to find significant savings on rent. This facility is the right combination of scale and compliance-ready specifications that they needed. We’re delighted to have helped deliver a warehouse that sets them up for the next stage of growth.”