Nexen adds new hubs in Europe, Latin America, Middle East

Seoul – Nexen Tire has expanded its global reach with the addition of new subsidiaries and offices in Europe, Latin America and the Middle East.

The new offices in Romania, Mexico and Saudi Arabia are aimed at strengthening competitiveness in markets with growing tire demand, said Nexen in a 1 Sept statement.

With about 85% of its sales overseas, the Korean tire maker said it has mainly focused on key regions such as Europe and the US in recent years.

Having expanded capacity at its European plant in Zatec, Czech Republic, Nexen said it now has a stable supply and “room for new growth”.

The tire maker said it is establishing “localised operations tailored to regional distribution and customer needs” to capitalise on the momentum.

Europe, which accounts for 40% of total sales, will see a new branch office in Bucharest, to reinforce Nexen’s presence in Southeastern Europe.

According to Nexen, Romania posted a record-high GDP in 2024, reflecting continued economic growth and increasing tire demand across Eastern Europe.

The new branch will oversee distribution in nine countries, including Serbia, Bulgaria, and Kosovo, to increase sales competitiveness in the region.

The company will also expand in Latin America with a new subsidiary in Mexico, which Nexen said “will serve as the hub of an independent business unit, shifting from oversight under US operations.”

The move, Nexen explained, “reflects strong regional growth, as Mexico recorded its highest-ever vehicle registrations in 2024 and there is steady tire demand.”

From Mexico, Nexen plans to increase sales and marketing in countries such as Honduras, Guatemala, Costa Rica, and El Salvador to expand its footprint in the region.

In the Middle East, Nexen plans to build on its Dubai branch office and Egypt subsidiary by establishing a unit in Saudi Arabia.

The tire maker expects the Saudi market to “grow rapidly” due to rising income levels, increased female drivers, and shorter replacement cycles in extreme climates.

The planned subsidiary will cover neighbouring markets such as Qatar, Bahrain, and Yemen, while strengthening partnerships with local distributors.

Nexen Tire will also enhance brand building through sports marketing, including sponsorship of Al Nasr SC in the UAE.

Beyond these regions, Nexen also recently opened new branches in Spain and Poland.

In Australia, the company expanded its distribution network along the Eastern Seaboard, a move Nexen says resulted 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 CEO John Bosco Kim.

“With these localisation-driven distribution strategies, we will continue to drive sustainable growth in global markets,” he added.