SAN BERNARDINO, Calif.—Nexen Tire America Inc. is opening its first U.S. warehouse, in Ontario, Calif., and scouting locations in New Jersey and Texas for additional sites to support its growth in North America.
San Bernardino-based Nexen Tire America, a subsidiary of South Korea´s Nexen Tire Corp., will use the warehouses primarily to back fill and supplement orders, according to Jack Oh, CEO and general manager. Customers will continue to receive the bulk of their orders directly from the factory in container-loads, he said.
Opening warehouses reflects Nexen Tire´s growth in North America, according to Oh. Nexen is on target to hit $100 million in sales this year in North America, and shooting for 20-percent growth next year, he said.
Growth in the past has been determined in part by product availability. But the parent company is expanding capacity at its Yangsan, South Korea, plant and planning an $80 million passenger/light truck tire factory in China to boost capacity.
Groundbreaking for the new facility, to be built near Qingdao, should take place in April, Oh said.
The 110,000-sq.-ft. Ontario warehouse is scheduled to open in December. The New Jersey warehouse, to service East Coast dealers, should open in the second quarter and the Texas facility before year-end.
The firm is overhauling its product line, starting with the N7000 high-performance, all-season passenger tire in 23 sizes, and the Roadian line in both sport-utility vehicle and light truck fitments.