Nexen Tire Corp. unveiled its medium-term strategy with goals to achieve sales of 3.6 trillion won (approx. $2.7 billion) by 2027 and build a plant in the US by 2028. To do this, the company said it plans to increase its current production capacity globally and expand its distribution capabilities, as well as propelling its electric vehicle (EV) business forward.

Brian Han, CEO of Nexen Tire America, Inc., said the company is looking to grow its revenue by 40% (equivalent to 1 trillion won or about $759 million) within five years. Nexen plans to increase its current production capacity, which stands at around 45 million units, to 52 million units by 2025. This will involve expanding annual production capabilities by 5.5 million units in Europe and 1.5 million units in Korea, Han said.

Nexen has also outlined a vision to increase the supply of EV tires for premium finished vehicles, aiming to raise its current OE EV tire ratio of 8% to 30% by 2027. According to Han, this will enhance the brand’s value by expanding the supply to premium finished cars.

In addition, Nexen announced plans to invest approximately $1.3 billion (1.7 trillion won) from the second half of 2023 until 2028 to establish a new factory in the United States with a daily production capacity of 30,000 units. This marks Nexen’s first establishment of an overseas factory in nine years. Han said the goal is to commence operations between 2028 and 2029, with the target region being southeastern U.S. states. Nexen plans to finalize the selection of the site in the second half of this year.

With production facilities in South Korea, China, Europe and soon the United States, Nexen will be able to strengthen its sales activities with global original equipment manufacturers (OEMs) and meet the demands for localization amid a changing global supply chain environment, Han said.