Nexen Tyre reports 1.08 trillion won sales, up 11.8%

Nexen Tire Corporation has reported sales of 1.08 trillion Korean Won (£595.5 million; 696.385 million euros; US$964 million), an 11.8 per cent increase compared with 2009. Hyun Bong Lee, vice chairman and CEO of Nexen said: “Nexen has made a great step towards its target of becoming one of the top 10 tyre manufacturers in the world by 2015.” Sales have almost tripled since 2004 and are forecast to triple again by then.

The firm’s operating profits reduced from 16.8 per cent to 9.4 per cent, due to the recent programme of capital investment the company embarked on (approximately 1 trillion won; $893 million in all), which centres on the construction of a new 20 million unit a year factory. The initial cornerstone was laid in June 2010 and production is planned to start in 2012.

Exports account for 71.8 per cent of Nexen’s sales, with a 4 per cent growth year-on-year is due to a “focused regional sales strategy and increasing brand awareness.” Domestic sales were up an impressive 42.2 per cent in comparison to the previous year. According to the company this was thanks to “strong OEM business and increased brand value.”

“Despite increases in the price of raw material, we have succeeded in improving sales and profits thanks to better quality and greater awareness in export countries. We are confident that we will be able to continue this growth trend in 2011,” Hyun Bong Lee observed.

Nexen Tyre Corporation also pointed out that when it announced its 2010 financial results at its shareholder meeting this month it was the first “among all the companies listed in the Korean Stock Exchange Market” to have held its shareholder meeting. Apparently the company has held this position every year for the last twelve years, which company representatives said shows its policy of “utter financial transparency.”

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