Nexen opens new branches
Nexen Tire has announced plans to open several new branches in its key strategic markets, including Europe, Latin America, and the Middle East, in a bid to boost competitiveness amid growing demand.
Overseas, Nexen generates around 85% of its revenue, and the company is focusing on key regions such as Europe, where production capacity at its plant in Žatec, Czech Republic, has been increased to ensure stable supplies and create new growth opportunities. The European market accounts for 40% of Nexen's total sales, and the company has reported that as part of its expansion into Southeastern Europe, it will open a branch in Bucharest, the capital of Romania. According to the manufacturer, Romania recorded a record-high GDP in 2024, indicating continued economic growth in Eastern Europe, and the new branch will manage tire distribution in nine countries, including Bulgaria, Serbia, and Kosovo.
Nexen is also looking to strengthen its presence in Latin America by establishing a new subsidiary in Mexico, which will operate as a separate entity rather than being managed by the company's US division. Last year, Mexico saw a record number of vehicle registrations, and demand for tires remains stable, with Nexen's Mexican subsidiary set to serve markets in countries such as Guatemala, Honduras, Costa Rica, and El Salvador.
In the Middle East, Nexen already has branches in Dubai and Egypt (opened in 2029 and 2023, respectively), and will be joined by a new subsidiary in Saudi Arabia. The company expects the Saudi market to grow rapidly due to increasing incomes, a rising number of female drivers, infrastructure development, and shorter tire replacement intervals in the extremely hot climate. The new subsidiary will also serve neighboring markets, such as Bahrain, Yemen, and Qatar, and strengthen partnerships with local distributors and develop sponsorship programs, including a partnership with UAE football club Al-Nasr.
Recently, Nexen also opened new branches in Spain and Poland, and expanded its distribution network on Australia's east coast, which helped increase sales in the region by more than three times in 2024 compared to the previous year.
"Our global strategy is focused on creating local structures that handle distribution and customer needs in each region," said Travis Kang, CEO of Nexen. "With a localization-oriented strategy, we will continue to ensure sustainable growth in the global market."