Nexen Tire christens U.S. technical center

RICHFIELD, Ohio—Nexen Tire Corp. CEO Travis Kang cut the ribbon Nov. 13 on his company's newest investment, the $5.2 million America Technical Center in Richfield, a facility expected to help the South Korean tire maker improve its position as an OE tire supplier in North America.

Just two years after breaking ground for the project, the 35,540-sq.-ft. facility is up and running with a staff of 18. One of three technical centers Nexen operates worldwide, the structure is built to house a staff of up to 40, according to Dean Rogers, senior manager, tire technology. Plans call for hiring most if not all the additional staff locally, he added.

The facility's activities thus far encompass computer design/3D modeling and measuring, NVH (noise/vibration/harshness) testing, field testing with its own and customer vehicles, tire dissection, limited rubber lab testing and tire loading/structural characterization.

There are plans to add a fully equipped rubber testing lab and an indoor test wheel capable of running both rolling resistance and high-speed uniformity, Rogers said during a tour of the facility. The space for those activities is vacant now.

Earlier this year, Nexen commissioned research/development facilities in Seoul, South Korea, and Kelkheim, Germany. The Korean center, dubbed "Nexen UniverCITY," spans 613,000 square feet and represents an investment of $178 million. The 118,000-sq.-ft. German facility houses both the Nexen Tire Europe commercial activities and the Nexen Tire Technical Center.

In a presentation at the Richfield facility ribbon-cutting, Project Manager Aaron Neumann noted that roughly half of the facility's efforts are devoted to OE tire development, a quarter to replacement market tire development and the rest to future tire technology.

Nexen has been conducting research and development in the U.S. for the past seven years, operating out of two buildings in Richfield. Discussions with Richfield officials on the new structure began in 2012.

Richfield, a village of about 3,500 inhabitants, is located between Cleveland and Akron.

To date, Nexen has been successful securing OE contracts with Fiat Chrysler Group L.L.C. (FCA), primarily on FCA's Ram light trucks, but is discussing business with other North American car makers as well, Rogers said.

Nexen is considered the No. 20 tire maker worldwide, with 2018 sales of $1.8 billion. North America represents nearly 29 percent of global sales—or roughly $550 million—according to company figures.