Seoul – Nexen Tire held a ground-breaking ceremony at the site of its new plant in Zatec, Czech Republic on 1 Oct, to start the construction of the €829-million project on 650,000 square metres of land.
The Korean tire-maker plans to start production by 2018 and then to gradually increase its annual production capacity to over 12 million units, based on market conditions.
The company also expects to create more than 1,000 jobs in the region with the new plant.
"The new plant in the Czech Republic is our second manufacturing facility outside Korea, after the one in Qingdao, China,” said Nexen Tire chairman Kang Byung-Joong.
The plant, he added, will provide an opportunity for Nexen to become a global top player by strengthening 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 Czech prime minister Bohuslav Sobotka and his cabinet members.
The new plant in Zatec is intended to meet the growing demands of the European market, and to ensure a stable supply of OE tires for global car manufacturers, including VW, Renault, Skoda and SEAT.