South Korea’s Nexen Tire announced the establishment of new branch office/subsidiaries in major markets, including Europe, Latin America, and the Middle East.
This expansion is a strategic move to strengthen competitiveness in markets with growing tyre demand. With about 85% of its sales overseas, Nexen says it has focused on key regions such as Europe and the US. Building on this foundation, the company expanded capacity at its second plant in Žatec, Czech Republic, to reinforce stable supply to core markets while creating room for new growth. To further capitalise on this momentum, Nexen is establishing localized operations tailored to regional distribution and customer needs, improving both efficiency and engagement.
Europe, which accounts for 40% of total sales, will see a new branch office in Bucharest, the capital of Romania, which 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 will serve as the hub of an independent business unit, shifting from oversight under US operations. This move reflects strong regional growth, as Mexico recorded its highest-ever vehicle registrations in 2024 and there is steady tyre 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, it plans to build on its Dubai branch office (2009) and Egypt subsidiary (2023) by establishing a subsidiary in Saudi Arabia. The Saudi market is expected to grow rapidly due to rising income levels, increase in female drivers, infrastructure development, and shorter replacement cycles in extreme climates.
The planned Saudi subsidiary will cover neighbouring markets such as Qatar, Bahrain, and Yemen, while strengthening partnerships with local distributors. It 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, resulting 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 John Bosco (Hyeon Suk) Kim, CEO of Nexen.