ZATEC, Czech Republic — The start of production this year at Nexen Tire Corp.'s $1 billion plant in Zatec is a big part of the South Korean company's "New Wave for the Future" global expansion strategy, the firm stated ahead of the scheduled opening ceremony.
The plant, located in the Triangle Strategic Industrial Zone in Zatec, began trial production in April and recently started shipping tires to customers, the company said.
Petr Očko, the Czech deputy minister of industry and trade, is expected to join Nexen CEO Travis Kang and Chairman Byung-Joong Kang at the plant's ceremonial opening on Aug. 28, Nexen said.
"With the opening of the Europe Plant, Nexen Tire plans to develop, produce and distribute products customized for the European market," Mr. Kang said, noting that the Zatec plant is one of four key investments Nexen has made of late to strengthen its global presence. The others are the Nexen univerCITY Central Research Institute in Seoul, South Korea, the European R&D Center in Kelkheim, Germany, and the North America R&D Center in Richfield, Ohio.
"With the completion of our four global institutions, Nexen Tire will be presenting products suited for our global customers, especially in Europe," he added.
The 7 million-sq.-ft. Zatec factory is rated at 3 million units of capacity at start-up and is expected to increase to 11 million by 2022.