Nexen is looking for a location for a new plant

A year after the announcement of plans by the Korean company Nexen Tire to build a new tire plant in the USA, the company reports that it is considering other countries for the location of the new production.

Nexen notes that in the process of selecting a location for the new plant, it became clear that it is necessary to evaluate locations outside the USA, and this decision is related to economic conditions in South Korea and the world, as well as the growth of construction and labor costs.

Last year, Nexen announced that it would build a new $1.3 billion plant in the USA, and the possibility of its location in one of the eight states in the southeastern part of the country is being considered. Now the company confirms that it has not abandoned plans to localize production in North America, and the amount of investment has not changed. At the same time, it is reported that if another region is chosen, the volume of investments will differ.

In any case, the Korean company intends to launch production at the new plant in 2028-2029, and all details will be announced later.

Currently, Nexen produces tires at four plants, two of which are located in Korea, and the others in China and the Czech Republic. Meanwhile, the other two largest Korean tire manufacturers - Hankook and Kumho - have already opened their own production in the USA.