NEXEN TIRE will establish new branches and corporations in major markets such as Europe, Latin America, and the Middle East. The aim is to strengthen the brand's global growth momentum in regions where tire demand is increasing.
According to the industry on the 1st, NEXEN TIRE will set up a Southeast Europe-focused branch in Bucharest, Romania. Romania's gross domestic product (GDP) recorded a historic high last year, continuing its economic growth, and tire demand is also increasing with the expansion of vehicle supply. The new branch will manage distribution in nine Eastern European countries, including Romania, Serbia, Bulgaria, and Kosovo.
In Latin America, it will establish a corporation in Mexico. Previously, the U.S. corporation managed Mexico, but there are plans to transition Latin America into an independent business territory. Last year, Mexico recorded the highest number of vehicle registrations in history, which has led to a steady increase in tire demand. NEXEN TIRE plans to strengthen its sales and marketing activities in key countries such as Honduras, Guatemala, Costa Rica, and El Salvador, using its Mexico corporation as a base to expand its brand presence across Latin America.
In the Middle East, it is pursuing the establishment of a corporation in Saudi Arabia. NEXEN TIRE has gradually expanded its business foundation in the Middle East and Africa since opening a branch in Dubai in 2009 and establishing a corporation in Egypt in 2023. Recently, the tire market in the Middle East has been rapidly growing due to the allowance of women driving, rising incomes, expanded road infrastructure, and shortened replacement cycles due to high temperatures.
The Saudi corporation will establish a supply chain covering neighboring countries such as Qatar, Bahrain, and Yemen, and plans to expand its local sales network through strategic collaboration with existing transaction partners. Additionally, as it is actively enhancing brand awareness through sports marketing, such as sponsoring Al Nasr SC in the United Arab Emirates, it plans to implement proactive brand marketing.
With overseas sales accounting for approximately 85%, NEXEN TIRE has focused on supplying core markets like Europe and the United States. Last year, in Europe, it expanded production capacity through the construction of a second factory in Zatec, Czech Republic, preparing to respond not only to stable supply in existing major markets but also to new growth markets.
An official from NEXEN TIRE said, "We will enhance both distribution network efficiency and customer engagement competitiveness by establishing local operating systems tailored to regional distribution structures and customer characteristics. We will continue sustainable growth in the global market through localization-based distribution strategies in the future."