Nexen Tire Corp. plans to build a manufacturing plant in the southeastern United States that will start producing tires by 2029.
The plant will represent an investment of $1.3 billion. Investment will begin during the second half of 2023.
When up and running, the plant will have a daily production capacity of 30,000 units, according to Nexen officials.
"This marks Nexen's first establishment of an overseas factory in nine years" and the South Korea-based company's first manufacturing facility in the U.S.
"By possessing production facilities in South Korea, China, Europe and the U.S. (and) through the establishment of the U.S. factory, Nexen will be able to strengthen its sales activities with global original equipment manufacturers (OEMs) and meet the demands for localization amid (the) changing global supply chain environment," say Nexen officials.
Big sales/production targets
As part of its medium-term strategy, Nexen also stated that it plans to achieve sales of $2.7 billion in 2027.
"Based on figures from 2022, this ambitious plan aims to achieve approximately 40% revenue growth" within five years.
The company also plans to boost its current production capacity, which stands at around 45 million units a year, to 52 million units by 2025. "This will involve expanding annual production capabilities by 5.5 million units in Europe and 1.5 million units in Korea."
