SEOUL, South Korea—A year after announcing plans to build a tire factory in the U.S., Nexen Tire Inc. has disclosed that it is also looking at other potential locations for its next international factory.
In a June 27 Korean stock market disclosure statement, Nexen said it realized the need to consider other options in the process of reviewing the location for the new factory due to the "domestic and international economic conditions," including increased costs of construction and labor.
Nexen unveiled its plans to build a $1.3 billion tire factory in North America in May last year, saying that it was studying eight southeastern regions of the US as possible locations.
In its latest announcement, the Seoul-based company said the North America option was still on the table and, if selected, the investment amount would remain $1.3 billion as planned.
However, the tire maker said it is also investigating "other global regions," the investment amount for which would be different, if selected.
Wherever the new factory is built, Nexen has set an operating target of 2028-29 for the new facility.
Nexen said it will disclose more information once the specific details about the new factory are confirmed.
