Construction is now underway at Nexen Tire’s new plant in Zatec, Czech Republic. The company has invested more than €829m (US$944m) to build the new factory, which sits on a 650,000m2 plot of land.
Nexen Tire plans for the plant to be operational by 2018 and then to gradually increase its annual production capacity to over 12 million units, based on prevailing market conditions. It is expected that the facility will create more than 1,000 jobs in the region.
Plans for the new plant were created in order to meet the growing demands of the European market, and to ensure a stable supply of original equipment tires for global car manufacturers.
The Czech Republic is strategically located to serve as a bridge to the Eastern European market, which has been emerging as a promising market for the rest of Europe, and to provide easy access to the biggest European markets, such as Germany, France, and the UK.
In addition, Zatec is said to offer many favorable attributes, including a large stable workforce. Currently, there are approximately 30 car manufacturers within a 400km radius of Zatec, providing Nexen Tire an optimal location for supplying original equipment tires.
October 15, 2015
