Nexen considering US$1 billion US tyre factory

Nexen Tire is considering eight southeastern US states as the possible location for a new $1.3-billion tyre factory project. According to stock market filing published on 18 May, Nexen is set to make a decision on the project by the end of 2023, with a view to getting the factory operational by 2028-2029.

In addition to building a new factory, local news sources reported that Nexen “is also open to the possibility of launching production in the US earlier by acquiring an existing manufacturer or establishing a joint venture if the conditions are right”.

Either way, the strategy of “establish[ing] global production infrastructure” would not only reinforce Nexen’s supply capability, but also help the company grow market share in North America.

Nexen currently operates four tyre plants: two in South Korea, one in Qingdao China and one more in the Czech Republic.