Nexen Opens Shanghai Offices, Eyes China Growth

(Akron/Tire Review) Nexen Tire opened a branch office in Shanghai, China, earlier this month, which company officials said will spur its penetration in the Chinese tyre market. The new office will join a tyre plant Nexen is constructing in Qingdao, Shantung, which broke ground last May. The new plant will cover some 5.7 million square feet – among the largest in China – and have a final capacity of 20 million per year, Nexen said.

Nexen said the new plant will produce tyres for the China market and export for North America and Europe. Nexen’s plant in South Korea will concentrate on high-end products, such as high performance and ultra-high performance lines. Nexen said it also plans to build a distribution network in China’s major regions, and plans to establish an R&D facility in that country.

Nexen Tire operation director Yang Chang Soo said, “One hundred million Chinese customers prefer to buy high-end tires, so China represents a prosperous market in tire industry. Our strategy with the Nexen brand will reach a higher market share, so operating profits will be made after one year of operation.”