Construction Progresses at Nexen’s Chinese Plant and R&D Centre

Nexen Tire Corporation has announced it will invest some £87 million ($170 million) over three years in the construction of its new Qingdao plant. The new production line will be up and running by the end of 2007, increasing production levels for customers signed up to UK exclusive distributor Stapleton’s Nexen Key Dealer Programme. The company is also planning to construct a new R&D centre in China at the beginning of next year, meaning customers can look forward to the launch of new products and an improved range.

Located in Laixi City, Qingdao, China, Nexen Tire Corporation’s new production facility will produce tyres for the American, European and Chinese markets and form part of the company’s strategy to become one of the top 10 tyre manufacturers in the world.

The production line will be running at full capacity by 2009 when it will produce more than 2.25 million tyres a year. Combined with Nexen’s production capacity in Korea, the company will be producing a total of more than 22 million tyres a year. Nexen expects the plant to be among the largest in China, covering around 5.7 million square feet.

As exclusive stockists of Nexen tyres in the UK, Stapleton’s has developed the Nexen Key Dealer Programme to reward valued customers. Benefits of the programme include a personalised reward scheme, preferential purchasing prices, in-store support in the form of leaflets and posters, branded merchandise and lifetime guarantees on products. Each member will also receive a dealer reference catalogue.

Stapleton’s offers a comprehensive range of Nexen tyres, available in 140 different sizes to meet the demands of the modern vehicle, from the super mini to the family car and high performance vehicles.

Chairman of Nexen Tire Corporation Byung Jung Kang, said: “Not only will the new plant in China allow Nexen to build a greater share of the Chinese tyre market, which is where many of the world’s car manufacturers are located, but will also continue to improve the company’s international brand recognition.”
Steve Parker, Stapleton’s trading director says: “The announcement that Nexen is to increase production is great news for our key dealer partners as they have the added reassurance of knowing the company is committed to maintaining availability and product development.”