Nexen breaks ground on Czech tire plant

ZATEC, Czech Republic (Oct. 2, 2015) — Nexen Tire Corp. has broken ground on its $1 billion tire plant project in Zatec, which the South Korean tire makers plans to use in part to supply its growing portfolio of OE contracts in Europe.

Nexen said it expects the 7 million-sq.-ft. plant to start production by 2018 and gradually increase annual production capacity to more than 12 million units, based on market conditions.

The company expects to create more than 1,000 jobs in the region with the new plant.

The Oct. 1 ceremony was attended by Czech Prime Minister Bohuslav Sobotka, cabinet members, Nexen Chairman Kang Byung-Joong and President Kang Ho-Chan, Usti Governor Oldrich Bubenicek, Zatec Mayor Zdenka Hamousov and approximately 300 guests, including European buyers, dealers and local residents.

Mr. Byung-Joong said establishing a plant in Europe was needed to help ensure a stable supply of OE tires for global car manufacturers, including Volkswagen A.G., Renault S.A, Skoda, SEAT, and others, with assembly plants in Europe.

Nexen noted that Czech Republic is strategically located to serve as a bridge to the Eastern European market, which has been emerging as a promising market for the rest of Europe, and to provide easy access to the biggest European markets, such as Germany, France, and the United Kingdom.

In addition, Zatec and the region surrounding areas offer a large stable workforce and proximity to approximately 30 car assembly plants within a 250-mile radius of Zatec. Nexen added that besides the geographical benefits, “proactive efforts to attract investment by the Czech Republic government played another decisive role in the construction of the new plant in Zatec.”

The Czech plant will be Nexen's second outside of Korea — where it operates two factories, in Yangsan and Changnyeong; the other is in Qingdao, China.