CZECH REPUBLIC: Nexen Tire aims to make inroads into European market with Czech Republic plant

The company said the eco-friendly plant, to start production in 2018, will have an annual capacity of 12 million tires and be in good position to become an original equipment supplier for various car makers.

The factory will be built on 65,000 square meters of land near the northwestern town of Zatec, the company said.

"The plant will help the company meet the steady rise in tire demand in Europe, and allow it to ship products to car makers such as Volkswagen, Skoda and SEAT," Nexen said in a press release. Skoda and SEAT are Czech and Spanish subsidiaries of Germany's auto giant, Volkswagen.

Nexen's official announcement comes a week after Czech officials said the South Korean company will build its second overseas factory in the Central European country. At the time, the tire maker confirmed the report was true but did not give out details.

The company said there were some 30 car manufacturing plants within a 400-kilometer radius of Zatec, making it an ideal location for the tire plant.

The Czech plant will make tires in an environmentally friendly manner that will emulate its Changnyeong factory in South Korea.

Nexen has two plants in its home country and another in Qingdao, China.

Source: Yonhap News Agency, Seoul; 23 June 2014
(Syed Rashid Ali, Karaschi, Pakistan)