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December 16, 2016 01:00 AM

Pirelli to sell Nexen brand in Brazil

Tire Business Report
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    Nexen Tire Corp.
    Pirelli's Brazilian subsidiary has agreed to distribute Nexen-brand tires in Brazil.

    SEOUL, South Korea–Pirelli Tyre S.p.A.'s Brazilian subsidiary has agreed to distribute Nexen-brand tires in Brazil, according to Nexen Tire Corp., which called the deal a "strategic partnership" with Pirelli Latam Participacoes Ltda.

    The deal "plays a significant role in the sense of Nexen Tire promoting its qualitative products in Brazilian market," the South Korean tire maker said. "With such great momentum, Nexen Tire will continue to promote its technologydriven products worldwide while promoting various marketing activities."

    Claudio Passerini (left), chief operations officer consumer Latam of Pirelli Pneus Ltda.,and Jack Oh, vice president, overseas sales for Nexen Tire, mark the signing of an agreement for Pirelli to distribute Nexen products in Brazil.

    Nexen did not say how it goes to market now in Brazil nor quantify what sales volume it expects the deal to generate. The deal covers Nexen's passenger, SUV and van tires.

    Nexen did not indicate how Pirelli will handle distribution of its products. Pirelli operates more than 130 of its own captive retail stores through its Pneuac subsidiary and is majority owner of Campneus Lider de Pneumaticos, one of Brazil's largest tire distributors with 54 retail outlets in seven Brazilian states.

    Nexen is active in more than 130 countries around the world, supplying tires from its plants in Yangsan and Changnyeong, South Korea, and Qingdao, China. A fourth plant, Zatec, Czech Republic, will be operational in 2018, Nexen said.

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