Nexen Tire Corp. broke ground at its new plant in Zatec, Czech Republic, beginning the company’s plan to meet the growing demands of the European market.
“The new plant in the Czech Republic is our second manufacturing facility outside Korea, after the one in Qingdao, China. It will serve as significant momentum for the company to make another leap forward,” said Nexen Tire Chairman Kang Byung-Joong. “I think it will provide a great opportunity to become a global top player amongst the world’s tire manufacturers by strengthening our presence in the European market.”
The plant is expected to help Nexen increase sales in the European market and provide original equipment tires for global car manufacturers including Volkswagen, Renault, Skoda and SEAT, the tiremaker said.
In July, the European Commission approved a €117million investment from the government trade agency, CzechInvest, for Nexen to build the factory.
Nexen has invested more than €829 million to build the new plant, which is expected to be operational by 2018 and create at least 1,000 new jobs.