SEOUL, KOREA - Nexen Tire plans to set up a production plant in the Czech Republicas part of an effort to make direct forays into the European market.This move is based ona strategy to supply original equipment tires to European carmakers such as Volkswagen and Fiat.
A high-ranking official of Nexen Tire said on May 18, “We confirmed the Czech Republic as our production base for Europe. Nexen Tire chairman Kang Byung-Joong will visit the country next month to sign an agreement with the Czech government.”
Nexen Tire’s new plant will be located in Nosovice in the eastern hinterland of the Czech Republic, where Hyundai Motor runs its own assembly plant.With an investment of 400 billion won, Nexen Tire will establish the plant with an annual tire production capacity of 6 million units by the end of 2017.
Thus far, excluding Hankook Tire which has its own factory in Hungary, other Korean tire producers have exported only domesticallyproduced tires to Europe.
