NEXEN TIRE, has announced a record-breaking second quarter for 2024, achieving KRW 763.8 billion in revenue and KRW 62.9 billion in operating profit. This milestone represents a 10.5% increase in revenue and a significant 69.5% rise in operating profit compared to the same period last year, underscoring the company’s strategic success despite challenges in raw material costs and international shipping rates.
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NEXEN TIRE’s Q2 success has been driven largely by a focused approach on premium, high-inch products and expanding original equipment (OE) supply, with particular success in the European market. European sales surged in advance of the winter season, while the company’s state-of-the-art European plant began a second phase of operations earlier this year, allowing for an increased supply of high-demand, high-inch tyres.
NEXEN TIRE’s advanced European plant, recognised as one of the industry’s most automated facilities, has contributed significantly to improved production efficiency, supported by logistics automation, real-time control, and a digitalised production process. This modernised plant is also equipped with environmentally friendly features, including systems to prevent fire risks and odour emissions.
Looking forward, NEXEN TIRE expects to maintain its growth trajectory by capitalising on its expanded production capabilities in Europe. The increased production capacity and expanded OE supply network, including partnerships with Baidu’s robotaxi Apollo RT6, Jeep, and Dodge’s EVs, will further strengthen NEXEN TIRE’s brand presence and product portfolio.
However, the company remains vigilant about potential market obstacles in the second half of 2024, including fluctuations in rubber prices and elevated shipping costs attributed to the ongoing Red Sea crisis.
Beyond profitability, NEXEN TIRE continues to advance its ESG objectives, recently earning a ‘Gold Medal’ rating from EcoVadis, placing the company in the top 3% for sustainable management practices. “Our continuous efforts to enhance product quality and technological capability, aligned with the expectations of global customers, are showing results,” commented a NEXEN TIRE representative. “We will continue to strive to provide premium product experiences to more customers.”
NEXEN TIRE’s blend of strategic expansion, technological innovation, and ESG commitment positions it for sustained growth and global brand recognition, cementing its role as a major player in the evolving tyre market.
