NEWS

• Strengthening competitiveness through localised operations in Europe, Latin America, and the Middle East

NEXEN TYRE, a leading global tyre manufacturer, today announced the establishment of new branch offices and subsidiaries in major strategic markets, including Europe, Latin America and the Middle East.

This expansion is a strategic move to reinforce competitiveness in regions with growing tyre demand. With approximately 85% of its sales generated overseas, NEXEN has focused on key markets such as Europe and the United States. Building on this foundation, the company expanded capacity at its second plant in Žatec, Czech Republic, to ensure a stable supply to core markets while creating opportunities for new growth. To further capitalise on this momentum, NEXEN TIRE is establishing localised operations tailored to regional distribution and customer needs, improving efficiency and engagement.

In Europe, which accounts for 40% of total sales, a new branch office will open in Bucharest, Romania, to strengthen NEXEN TIRE’s presence in Southeastern Europe. Romania posted record-high GDP in 2024, reflecting ongoing economic growth and rising tyre demand across Eastern Europe. The new branch will oversee distribution in nine countries, including Serbia, Bulgaria and Kosovo, enhancing sales competitiveness in the region.

In Latin America, a new subsidiary will be established in Mexico, serving as the hub for an independent business unit and shifting from oversight under U.S. operations. This move responds to strong regional growth, with Mexico recording its highest-ever vehicle registrations in 2024 and steady tyre demand. From Mexico, NEXEN plans to expand sales and marketing activities in countries including Honduras, Guatemala, Costa Rica and El Salvador.

In the Middle East, NEXEN will build on its Dubai branch office (2009) and Egypt subsidiary (2023) with the establishment of a new subsidiary in Saudi Arabia. The Saudi market is projected to grow rapidly due to rising income levels, an increase in female drivers, infrastructure development, and shorter replacement cycles in extreme climates. The new subsidiary will cover neighbouring markets such as Qatar, Bahrain and Yemen, while strengthening partnerships with local distributors. NEXEN will also enhance brand presence through sports marketing, including sponsorship of Al Nasr SC in the UAE.

Beyond these regions, NEXEN has recently opened new branches in Spain and Poland. In Australia, the company expanded its distribution network along the Eastern Seaboard, resulting in more than a threefold increase in sales in 2024 compared to the previous year.

“A key focus of our global strategy is to build localised operating systems that respond precisely to the distribution structures and customer needs of each region,” said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. “Through these localisation-driven distribution strategies, we will continue to drive sustainable growth in global markets.”