Nexen's American tech center up and running in Ohio

RICHFIELD, Ohio — Nexen Tire Corp. CEO Travis Kang cut the ribbon today on his company's newest investment, the $5.2 million America Technical Center in Richfield, a facility that's expected to help the South Korean tire maker improve its position as an OE tire supplier in North America.

The 35,540-sq.-ft. facility is up and running with a staff of 18 two years after the company broke ground on it in Richfield, a village of about 3,500 inhabitants located between Cleveland and Akron.

The facility — one of three technical centers Nexen operates worldwide — is built to house a staff of up to 40, according to Dean Rogers, senior manager, tire technology. Plans call for hiring most if not all the additional staff locally, he added.

The facility's activities thus far encompass computer design/3-D modeling and measuring, NVH (noise/vibration/harshness) testing, field testing with its own and customer vehicles, tire dissection, limited rubber lab testing and tire loading/structural characterization.

Still in the planning phase are a fully equipped rubber testing lab and an indoor test wheel capable of running both rolling resistance and high-speed uniformity, Mr. Rogers said during a tour of the facility. The space for those activities is vacant for now.

Earlier this year Nexen commissioned research/development facilities in South Korea, in Seoul, and in Germany, in Kelkheim.

The Korean center, dubbed "Nexen UniverCITY," spans 613,000 square feet and represents an investment of $178 million.

The 118,000-sq.-ft. German facility houses both the Nexen Tire Europe commercial activities and the Nexen Tire Technical Center.

In a presentation at the ribbon-cutting, Aaron Neumann, project manager, noted that roughly half of the facility's efforts are devoted to OE tire development, a quarter to replacement market tire development and the rest to future tire technology.

Nexen has been conducting research and development in the U.S. for the past seven years, operating out of two buildings in Richfield. Discussions with Richfield officials on the new structure in 2012.

In addition to Nexen's direct investment of $5.2 million, the company received $200,000 in assistance from state funding sources along with a deeply discounted price on securing the 4-acre property, according ton Brian Frantz, director of planning and economic development for the Village of Richfield. In addition, the Village will refund Nexen the $200,000 it paid for the property over seven years in the form of tax increment financing.

During the ribbon-cutting ceremony, Nexen presented Urban Vision, a non-denominational Christian-based non-profit whose mission is assist families in need in the Akron area.

To date, Nexen has been successful securing OE contracts with Fiat Chrysler Group L.L.C. (FCA), primarily on FCA's Ram light trucks, but is discussing business with other North American car makers as well, Mr. Rogers said.

Nexen is considered the No. 20 tire maker worldwide, with 2018 sales of $1.8 billion. North America represents nearly 29% of global sales, according to company figures, or roughly $550 million.