|Title Nexen Tire reaches 1 trillion won in Annual Sales||Date2011-01-28|
- Nexen reaches the highest with 1 trillion 80.3 billion won sales in 2010
- Expansion in the OE market and sports marketing boost brand recognition
- Flying high in the domestic market; sales increased by 42.3% (RE 32%, OE 63%)
Nexen Tire announced on May 27th that the 2010 total sales reached the highest by scoring 1 trillion 80.3 billion won which was increased by 11.8% compared to the same period in the previous year. Operating profit was stable 101.8 billion won and the ordinary income 97.3 billion won.
“Despite the plummeting exchange rate and soaring material cost last year, we made the largest sales owing to the domestic sales increase and the favorable results in the overseas market. Especially the price of natural rubber was raised up to $5,000 during the year from $3,000 at the beginning of the year.” Nexen revealed. “Our achievement will not only be a temporary case. I am sure we will keep growing this year as well.”
The tremendous improvement in the domestic market was the key momentum for the good performance. Also the growth in the export market focusing on America was another main reason for the achievement.
The sales in the domestic OE market have dramatically increased by 63% compared to the same period of the previous year. The RE market sales have also improved by 32% and the export increased as well by 4%, contributing to the successful performance.
Nexen Tire explains the reasons for the growth in turnover. “The export sales increased due to the customized sales strategy for different regions and the improvement in brand recognition.
The domestic sales improved for various reasons. We expanded the logistics channels, concluded many more OE supply contracts with domestic auto manufacturers for vehicles like K5 and New Grandeur and through Nexen Heroes and other motor sports events, we raised brand recognition.
Moreover, the Qingdao plant in China turned into a profit already in the 3rd year since the foundation. It is expected to grow rapidly in the future.
After scoring the biggest sales last year, Nexen Tire is expected to make the biggest sales yet again this year and break the record. Changnyeong plant in Kyeongnam where Nexen has invested 1 trillion 200 billion won will be fully running from the next year and Nexen’s rapid growth will only continue both in quality and quantity.