Nexen reports record revenue

The company Nexen Tire announced that in the second quarter of 2024, it received revenue of 763.8 billion won ($560 million), which is 10.5% more than a year ago, while operating profit increased by 69.5% to 62.9 billion won ($46 million).

In the Korean company, it is noted that the improvement in indicators is associated with an increase in sales in physical terms and an update of the assortment. Turnover increased in all regions, especially in Europe, and the expansion of supplies to the original equipment (OE) segment continues. In addition, operating profit increased due to the new capacity of the plant in the Czech Republic and the growth in sales of large-diameter tires, as well as work to reduce raw material and transportation costs.

It is expected that in the second half of the year, the effect of the launch of the second stage of the Czech plant, which was implemented in early 2024, will also be tangible. At the same time, the company's revenues will be negatively affected by factors such as volatility in raw material prices, including rubber, and high transportation costs related to the crisis in the Red Sea.

In Nexen, they emphasize that the plant in the Czech town of Žatec is one of the most high-tech in the industry and is characterized by a high degree of automation, which, in combination with digitalization, increases production efficiency, and equipment has also been installed to reduce fire hazards and prevent unpleasant odors.

Since 2016, Nexen has steadily expanded its cooperation with European automakers, and not so long ago, the company also began supplying tires for the Apollo RT6 robotaxi from Baidu. In addition, supplies of tires for new electric vehicles from such brands as Jeep and Dodge are planned.

"Our relentless efforts to improve product quality and expand our technological capabilities in line with customer expectations around the world are bearing fruit," Nexen noted.