Nexen Tire America Inc. is opening a 110,000-sq.-ft. warehouse in Ontario, Calif.-its first in the U.S.-and is scouting locations in New Jersey and Texas for additional warehouses to support its growth in North America.
San Bernardino-based Nexen Tire America, a subsidary of South Korea's Nexen Tire Corp., will use the warehouses primarily to back fill and supplement orders, according to Jack Oh, CEO and general manager.
Customers will continue to receive the bulk of their orders directly from the factory in container-loads, Mr. Oh said.
Opening warehouses for the first time reflects Nexen Tire's growth in North America, Mr. Oh said.
Nexen is on target to hit $100 million in sales this year in North America, he said, and is shooting for 20-percent growth next year.
Growth in the past has been determined in part by product availability, but the parent company is expanding capacity at its Yangsan, South Korea, plant and is planning an $80 million passenger/light truck tire factory in China to expand capacity.
Groundbreaking for the new plant, to be built near Qingdao, should take place in April, Mr. Oh said. Capacity figures are not available at this time.
The Ontario warehouse is scheduled to open in December, Mr. Oh said.
The New Jersey warehouse, to service East Coast dealers, should open in the second quarter and the Texas facility before year-end.
The U.S. company recently changed its name to Nexen Tire America Inc. and moved to new quarters in San Bernardino.
The company also disclosed at the recent SEMA Show an overhaul to its product line, starting with the N7000 high-performance, all-season passenger tire in 23 sizes (including a 225/30ZR20) as well as the Roadian line in both sport-utility vehicle (HP) and light truck (HT) fitments.
Separately, Nexen Corp.-formerly Heung Ah Tire Ind. Co. and since 2000 majority owner of Nexen Tire Corp.-exhibited its line of inner tubes, curing tubes, solid tires and retreaded truck tires at the SEMA Show.