QINGDAO, China (May 10, 2006) — Nexen Tire Corp. will break ground May 12 for a tire plant in Qingdao that should start production late in 2007 or early in 2008.
Nexen, the world's 36th largest tire maker in 2004 with sales of $299 million, has budgeted $80 million for the plant, which, at full production, will have annual capacity of 5.25 million tires, Nexen officials said.
To facilitate the project, Nexen set up a wholly owned subsidiary in China in January. The company did not disclose the physical size of the plant or expected employment.
Nexen Chairman B.J. Kang, CEO J.M. Hong and Executive Vice President Travis Kang are expected to be on hand for the ground breaking, the company said.
When the plant is at full capacity, it will provide Nexen the capability to make 20 million units a year, officials said, when combined with the output of its Yangsan, South Korea, factory.