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August 30, 2019 6:35 pm | FILED UNDER: business

Nexen Tire Expands Global Reach With Opening Of Zatec Plant

By Matt Atlas Nexen Tire Plant Zatec Czech Republic

Nexen Tire officially launched operations at its new European tire plant in Zatec on 29 August 2019 with a grand opening ceremony.

 

 

Over three hundred guests attended the opening, including the Global CEO of Nexen Tire, Deputy Minister of Industry and Trade of the Czech Republic, the Governor of the Usti nad Labem Region, the Korean Ambassador to the Czech Republic, the Mayor of Zatec, business partners, local press, construction staff, and employees.

 

 

Nexen Tire’s new Czech factory cements European presence

 

 

The company opened the plant to increase its manufacturing capacity and strengthen its position in the European automotive market. Nexen selected the Czech Republic for its strategic location and strong automotive industry.

 

 

“The opening of the Europe plant will see an increase in Nexen Tire’s efficiency in addition to a faster response to the neighboring automakers. Recognizing the importance of being closer to our customers, we have established a production base to respond to their needs in a more prompt and flexible way,” said Travis Kang, the Global CEO of Nexen Tire. “As Korea’s leading manufacturer with a 77-year history of knowledge and technology in the tire industry, we plan to increase global production capacity, going beyond the challenges and making big steps in the global tire industry.” “In addition, with over 30 car makers located within 400 kilometers, the Czech Republic offers the ideal location for our business,” Kang added.

 

 

Nexen Tire Plant project brokered by CzechInvest

 

 

The plant represents the third-largest foreign investment project in the Czech Republic brokered by the state-run business and investment development agency CzechInvest. Nexen broke ground on the USD 1.1 billion project in 2015 and began operations in April 2019.

 

 

Zatec factory is Nexen’s fourth manufacturing plant

 

 

The Zatec plant is Nexen Tire’s second manufacturing plant to open outside of Korea. The new factory is Nexen Tires fourth, and the company also has two factories in South Korea and one in China.

 

 

Smart factory and R&D center

 

 

The plant boasts an innovative Smart Factory, which enables the company to manufacture tires with zero-defects in quality. The Smart Factory runs on an advanced operating system developed by the company that can identify any defects before the tire leaves the production line. The factory will also be home to Nexen’s European R&D Center, the first outside of its headquarters in South Korea.

 

Zatec factory to employ 1,3oo

 

 

The Zatec plant currently employs 800 workers with plans to grow to 1300 employees. The company forecasts they will export three million tires in 2019. Once construction is completed, the facility’s production capacity will gradually increase to over 12 million tires a year.

 

 

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