New Branches and Subsidiaries to Be Established in Romania, Mexico, and Saudi Arabia
Nexen Tire is establishing new branches and subsidiaries in key strategic markets such as Europe, Central and South America, and the Middle East, strengthening its efforts to penetrate new overseas markets. This aggressive strategy for entering new markets aims to secure global competitiveness.
On September 1, Nexen Tire announced that it will establish new branches and subsidiaries in Romania, Mexico, and Saudi Arabia.
First, in the European market, a new branch will be set up in Bucharest, the capital of Romania, to respond to Southern and Eastern Europe. This branch will be responsible for distribution in nine Eastern European countries, including Romania, Serbia, Bulgaria, and Kosovo, and is expected to enhance sales competitiveness in the region.
In Central and South America, a new subsidiary will be established in Mexico. Previously, the United States subsidiary managed Mexico and the surrounding region, but the company now plans to operate Central and South America as an independent business territory. Using the Mexican subsidiary as a base, Nexen Tire will strengthen its sales and marketing activities in major countries such as Honduras, Guatemala, Costa Rica, and El Salvador, aiming to expand its brand presence throughout Central and South America.
In the Middle East, Nexen Tire is moving forward with the establishment of a Saudi Arabian subsidiary. Since opening its Dubai branch in 2009 and establishing its Egyptian subsidiary in 2023, Nexen Tire has gradually expanded its business base in the Middle East and Africa. The Saudi subsidiary will establish a supply system that covers neighboring countries such as Qatar, Bahrain, and Yemen, and plans to expand its regional sales network through strategic cooperation with existing partners. Additionally, the company will continue its active brand marketing, such as boosting brand awareness through sports marketing, including sponsorship of the Al Nasr SC club in the United Arab Emirates.
This expansion by Nexen Tire is a strategic investment in regions where tire demand is rapidly increasing. With approximately 85% of its revenue coming from overseas, Nexen Tire has so far focused its supply on core markets such as Europe and the United States. Last year, the company expanded its production capacity by increasing its second plant in Zatec, Czech Republic, and established bases in Spain and Poland. In Australia, Nexen Tire expanded its distribution network along the eastern coastal economic region, achieving more than triple the previous year's sales.
Nexen Tire has decided to build the capability to respond not only to stable supply in existing major markets but also to new growth markets. Accordingly, the company plans to establish operational systems tailored to the distribution environment and customer characteristics of each country, thereby increasing distribution efficiency and expanding customer touchpoints.
A Nexen Tire representative stated, "We are establishing local operational systems that can precisely respond to the distribution structure and customer needs of each region," adding, "We will continue to pursue sustainable growth in the global market through localization-based distribution strategies."
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