Nexen’s Qingdao Plant to Start Production in December
Speaking to Tyres & Accessories, Korean manufacturer Nexen has confirmed that the first phase of building work on its £87 million ($170 million) factory has been completed and the first tyres are due to roll off the production line in December 2007. Initially the plant will produce 2 million units per annum and will reach full production capacity by 2009. Construction of the company’s new R&D centre is expected to be completed at the beginning of 2008.
Nexen’s Chinese branch was exhibiting at the Reifen China exhibition as a way of introducing is products to those within its distribution network believing that a strong local distribution strategy is the key to success in the domestic Chinese market. Like other large manufacturers, Nexen’s distribution is operated by a series of provincial distribution centres that act as wholesalers selling product directly to retailers and wholesalers in each province. Most provinces are represented by one distribution centre, but some of the more rural provinces are grouped together.
Nexen tyres are exclusively distributed by Stapleton’s in the UK.