ZATEC, Czech Republic—Nexen Tire Europe is putting the finishing touches on its greenfield plant in Zatec as it awaits permission from authorities to begin trial production there.
Nexen broke ground on the $1.1 billion project in October 2015. Start-up of the first phase of the factory, producing roughly 15,000 units a day, originally was scheduled for 2018. Ivan Dzido, an external communications officials for the tire maker, declined to elaborate on what caused the delay.
Once inaugurated, Nexen plans to increase the production capacity gradually at the facility to more than 12 million units a year.
Zatec is Nexen's second manufacturing facility outside South Korea. The other is located in Qingdao, China.
"It will be one of the most modern tire manufacturing plants not only in the Czech Republic and Europe, but also in the world," Dzido stated.
The plant, according to Nexen, will help to meet the growing demands of the European market, and ensure a stable supply of original equipment tires for global car manufacturers.