Nexen Tire Holds Groundbreaking Ceremony for its New Plant in Zatec, Czech Republic

-- Nexen Tire will strengthen its presence in Europe by constructing its new plant in Zatec, Czech Republic

-- The new plant is expected to increase sales in the European market and provide a stable supply of original equipment tires for global car manufacturers

SEOUL, South Korea, Oct. 1, 2015 /PRNewswire/ -- Nexen Tire, a leading global tire and tube manufacturer, held a ground breaking ceremony at the site of its new plant in Zatec, Czech Republic, strengthening its efforts in targeting the European market, one of the biggest tire markets in the world. The company invested more than EUR829 million to build the new plant on 650,000 square meters of land in Zatec.

Nexen Tire plans for the plant to be operational by 2018 and then to gradually increase its annual production capacity to over 12 million units, based on prevailing market conditions. It is expected that the new plant will create more than 1,000 jobs in the region.

"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 ceremony was attended by Nexen Tire executives, including Chairman Kang Byung-Joong and President Kang Ho-Chan, as well as Prime Minister Bohuslav Sobotka and his cabinet members. Also in attendance were Usti Governor Oldrich Bubenicek, Zatec Mayor Zdenka Hamousov, and approximately 300 guests, including European buyers, dealers, and local residents.

The construction of the new plant in Zatec was planned in order to meet the growing demands of the European market, and to ensure a stable supply of original equipment (OE) tires for global car manufacturers, including Volkswagen, Renault, Skoda, SEAT, and others.

The Czech Republic is strategically located to serve as a bridge to the Eastern European market, which has been emerging as a promising market for the rest of Europe, and to provide easy access to the biggest European markets, such as Germany, France, and the UK. In addition, Zatec, where the new plant is located, features many favorable attributes, including a large stable workforce. Currently, there are approximately 30 car manufacturers within a 400 km radius of Zatec, providing Nexen Tire an optimal location for supplying original equipment tires.

In addition to the geographical benefits, proactive efforts to attract investment by the Czech Republic government played another decisive role in the construction of the new plant in Zatec.

Nexen Tire has been supplying original equipment tires for various European car manufacturers' models, including Fiat's 500X and Ducato, Renault's Twingo and Volkswagen's Caddy. The company also executes various marketing activities in order to strengthen its brand awareness and increase sales in the European market, such as signing an official sponsorship with Manchester City Football Club and participating in the IAA Frankfurt Motor Show 2015.

About Nexen Tire
Nexen Tire, established in 1942, is a global tire manufacturer headquartered in Yangsan, South Gyeongsang Province, and in Seoul, South Korea. Nexen Tire, one of the world's fastest growing tire manufacturers, works with 491 dealers based in 141 countries around the world (as of July 2015) and owns three manufacturing plants – two in Korea (Yangsan and Changnyeong) and one in Qingdao, China. Another plant in Zatec, Czech Republic will be operational by 2018. Nexen Tire produces tires for passenger cars, SUVs, and light trucks with advanced technology and excellence in design. The company also focuses on producing UHP tires, which are based on advanced technologies. Nexen Tire supplies OE tires to global car makers in various countries around the world. In 2014, the company achieved a grand slam of the world's top 4 design awards for the first time amongst the various tire makers in the world. For more information, please visit http://www.nexentire.com.

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SOURCE Nexen Tire

Burson-Marsteller Korea, Eugene Han, Phone: [phone], Mobile: [phone], Email: [email protected]; or, Eunju Lee, Phone: [phone], Mobile: [phone], Email: [email protected], http://www.nexentire.com, http://www.nexentire.com