MTD Mid-Year Q&A: U.S. Plant 'Core' to Nexen's Vision

A U.S. plant remains part of Nexen Tire America's long-term plans, Brian (Yoonseok) Han, the company's CEO, tells MTD in this exclusive interview.

MTD: How was the first half of the year for Nexen Tire America?

Han: The first half of 2026 has seen solid growth for Nexen Tire America. We’ve continued to see momentum in both the replacement and OE segments, supported by a strong customer network, solid supply chain strategy and increased global production capacity following the phase two expansion of our Czech manufacturing facility.

MTD: What have some of the company’s challenges been?

Han: Like much of the industry, we’ve faced ongoing macroeconomic pressures, including tariffs, fluctuating raw material costs and broader global economic uncertainty. Competition in the market continues to intensify, especially as value-oriented brands and premium technology leaders both compete for share. This environment challenges us to consistently demonstrate the strength of Nexen’s value proposition through product quality, technology, service and supply chain reliability. Despite these conditions, our ability to remain agile and customer-focused has allowed us to continue growing in a very competitive environment.

MTD: What were some of Nexen's achievements during the first half of 2026?

Han: One of our biggest achievements this year has been the continued expansion of our OE portfolio. Securing fitments with major global automakers validates the strength of Nexen’s engineering, technology and product quality. We’ve also maintained strong fill rates and operational consistency, which has been critical for supporting our distributors and retail partners during a period where supply chain reliability remains a major differentiator. In addition, the launch of our “Purple Snow” testing center has accelerated our ability to develop high performance tires specifically tailored to North American climates and driving conditions, while maintaining our industry-leading track record of zero recalls in America.

MTD: What’s your take on the state of consumer tire demand in North America as we head into the second half of the year?

Han: We certainly expect there to be some challenges ahead, but are encouraged by the resilient signs within the replacement market, in particular. Consumers are holding onto vehicles longer, which continues to support replacement tire demand, especially in the growing CUV, SUV and light truck segments. We also see continued momentum in the all-weather category as drivers increasingly seek year-round performance and convenience. We believe we are well-positioned to meet this demand, focusing on specialized tires that can handle the increased weight and performance requirements of these larger vehicles and continuing to deliver a strong balance of technology, performance and value.

MTD: Nexen has maintained a steady cadence of new product introductions in the U.S. Why is this important to the company?

Han: New product development is central to Nexen’s growth and long-term strategy. Auto trends are always evolving, whether through changing vehicle platforms, EV (electric vehicle) adoption, longer tread wear expectations or increasing demand for specialized fitments. Continuous innovation allows us to stay ahead of those trends, while giving our dealers and distribution partners fresh opportunities for growth.

Standing still is not an option in today’s market. Maintaining relevance requires constant investment in technology, product development and expanded tire size options. Our goal is to ensure that Nexen remains a technology-driven brand that delivers both performance and value for North American consumers.

MTD: Nexen recently announced that most of its consumer tire lineup is now EV-compatible. Why has Nexen taken this approach?

Han: Rather than creating completely separate product lines for EVs, Nexen has focused on integrating EV-compatible technologies across most of our mainstream consumer lineup. By engineering tires with enhanced load capacity, durability and low-noise performance suitable for both EV and internal combustion applications, we simplify inventory management for our channel partners while ensuring our products meet performance needs as EV adoption continues to evolve. It’s about being prepared for where the market is going, while continuing to deliver practical value today.

MTD: Three years ago, Nexen announced plans to build a plant in the southeastern U.S. Can you bring us up to speed on this project? Why was it put on hold?

Han: As we assessed the global manufacturing needs of Nexen Tire, it became clear that capacity was required in other parts of the world on a more urgent basis. Economic forces, supply chain shifts and regional demand shifts required us to prioritize our capital investments. We have extended capacity within our existing global manufacturing network, which has allowed us to more effectively meet North American demand while we reassess the best timing for the U.S. plant.

MTD: Is a U.S. plant still part of Nexen’s long-term plans?

Han: Absolutely. A U.S. manufacturing presence remains a core part of Nexen’s long-term vision for North America. Local manufacturing provides significant advantages in logistics efficiency, supply chain resilience, tariff mitigation and closer collaboration with our OE customers. It is not a question of if, but when.

MTD: Artificial intelligence (AI) is expected to become an increasingly larger part of tire development. How is Nexen currently using AI in the development of its products and what future uses do you anticipate?

Han: Nexen is actively integrating AI into both our engineering and development processes. Today, we use AI-based simulation to accelerate compound development and optimize tread patterns and predict performance before physical prototypes are produced. These tools help reduce development time, while improving precision and consistency.

Looking ahead, we expect AI to play an even larger role in areas such as real-time wear analytics, vehicle-specific OE tuning and manufacturing quality control. We also see strong potential in technologies like XAI (explainable AI) to provide engineers with deeper insights into design optimization and product performance. Ultimately, AI will help us bring higher-performing products to market faster and more efficiently.

MTD: What can we expect to see from Nexen during the rest of 2026?

Han: For the remainder of 2026, our focus is on consistency and commitment. We will continue to invest in our people, products, customers and operational capabilities as the four pillars of our organization. We plan to further expand key product lines, including additional size offerings for the N’Priz S and other high-demand segments, while also strengthening brand visibility across North America. At the same time, we remain committed to sustainability initiatives and long-term innovation. Our objective is to continue building a stronger, more agile organization that delivers meaningful value across every level of the supply chain.