Nexen Tire, one of Korea’s leading tire makers, will soon decide on its second production site in Europe, and the Czech Republic is emerging as the strongest candidate, sources said.
According to Czech News Agency, Nexen is considering several locations including Poland, Slovakia and the Industrial Zone Triangle near Zatec of the Czech Republic.
The countries, and their regions, are reportedly battling to win the investment from Nexen.
The tire maker, however, denied the speculations and announced Thursday that there had not been any official consideration of constructing a factory in the Czech Republic.
“It is true that the company is looking into Europe, the United States, Latin America and Southeast Asia as potential locations for an additional overseas factory, but it is merely a part of the company’s mid- to long-term plans,” said a company official. “Hence, rumors of the Czech Republic being a strong candidate are false.”
The local media also reported that the Czech Ministry of Industry and Trade refused to comment on the matter as well until the investor ― reportedly Nexon Tire ― made its final decision.
The company is also involved in supplying tires for Skoda Auto, the Czech Republic’s leading carmaker and a Volkswagen Group affiliate.
Nexen Tire presently has a manufacturing plant in China that can produce 10 million tires a year. Combined with the domestic output, the company hopes to raise its total capacity to some 30 million units within the year.
Moreover, Nexen wants to ultimately produce 80 million tires, reach $2.5 billion in sales and become a top 10 global tire maker by 2020, according to industry sources.
Currently, the company sells tires in more than 120 countries worldwide.
By Kim Joo-hyun (
jhk@heraldcorp.com)
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