Nexen looking beyond US for next international tire factory

Seoul – A year after announcing plans to build a tire factory in the US, Nexen Tire has disclosed that it is also looking at other potential locations internationally for its next international factory.

In a disclosure statement 27 June, the Korean tire maker said it realised the need to consider other locations in the process of reviewing the location for the new factory.

This, it said, was due to the “domestic and international economic conditions” including increased cost of construction and labour.

Nexen unveiled its plans to build a $1.3-billion tire factory in North America in May last year, saying that it was studying eight southeastern regions of the US as possible locations. (ERJ report)

In its latest announcement, the Korean group said the North America option was still on the table and, if selected, the investment amount would remain $1.3 billion as planned.

However, the tire maker said it is also investigating “other global regions”, the investment amount for which will be different, if selected.

Whether in North America or not, Nexen has set itself an operating target of 2028 – 2029 for the new facility.

The Seoul-based tire maker said it will disclose more information once the specific details about the new factory are confirmed.