Nexen Tire plans to increase sales to $2.7 billion by 2027 and put up a new factory in the United States by 2028. The goal is to increase production capacity and expand distribution capabilities. Electric vehicles will be one of the main focus points to improve business.
The goal for the next five years is to increase revenue by 40% to $759 million. The company’s current capacity sits at 45 million Nexen tires per year. The plan is to achieve 52 million units by 2025. This will involve expanding the yearly production to 1.5 million tires in Korea and 5.5 million tires in Europe.
Nexen’s current OE EV tire ratio sits at 8%. The plan also involves increasing it to 30% by 2027. The main focus will be to supply tires to premium vehicles. This will help raise the brand’s value. In addition, the company hopes to invest $1.3 billion from mid-2023 to build a new factory in the US. The project will take 5 years to complete and will increase production capacity by 30,000 units.
Nexen hasn’t put up any establishments overseas in about 9 years. The factory in the US will be the first since then. Company officials expect operations to begin latest 2029. The site selection will be complete in the second half of 2023. Nexen will have plants in Europe, China, South Korea, and the United States upon completion. This will allow it to strengthen its activities around the world and meet OEM demands for localization.