John Hagan, executive vice president of sales at Nexen Tire America Inc., said he believes vehicles miles traveled will spike as people get back on the road, and demand for tires will increase in the months ahead. He told Tire Business that Nexen will be there to meet that demand.
How would you describe business thus far in 2020?
Challenging. 2020 has been a year of daily new challenges and the need to rise and meet them head on. While we always strive to showcase our support to our community of dealers and end users in various ways, it's been especially important that we do what we can to communicate this support system.
What are some of the key changes the company has made in order to keep employees and customers safe during the COVID-19 pandemic?
Working from home and communicating with our customers and respecting their wishes on visits/meetings.
Do you expect any supply difficulties in the second half of the year? Why or why not?
No, our factories are producing at normal rates in order to supply the three current warehouses, and we have ample of amount of inventory to support our customers' needs.
Nexen recently opened its third distribution center, near Columbus, Ohio. What are the advantages of that? How big of a region will the D/C service? How will that help your customers there?
The third D/C will help us reach more parts of the U.S. in even quicker delivery times and more efficient distribution of fulfillment and logistics. In addition, our factories are producing at normal rates in order to supply the three current warehouses.
We have ample of amount of inventory to support our customers' needs.
What are some of the pleasant suprises you are seeing in the industry?
People coming together; the communication between our customers and the Nexen Team has been very positive.
The United Steelworkers union has petitioned for antidumping and countervailing duties on passenger and light truck tires made in Thailand, South Korea, Taiwan and Vietnam. What is your company's reaction to that?
We are working with the (International Trade Commission) and engaging in any and all conversation to ensure that the ITC knows and appreciates our position in regards to this petition. We are hoping for a positive outcome in regards to South Korea in general.