QINGDAO, China (Sept. 21, 2006) — Nexen Tire Corp. opened a branch office Sept. 6 in China to spur its penetration of the Chinese market, the company said.
The office in Shanghai follows the ground-breaking in May of Nexen's tire plant in Qingdao. The plant is expected to begin production late in 2007 or early in 2008. Nexen has budgeted about $80 million for the plant, the company said earlier.
The plant will be able to produce 60,000 tires a day and as many as 20 million a year in the mid- to long-term, Nexen said. When the Chinese plant is running, Nexen's main plant in South Korea will concentrate on producing high-end products while the Chinese plant will focus on the domestic market as well as exports to North America and Europe.
Nexen also plans to establish a research and development center.