Nexen Tire Suspends Operations at Yangsan Plant, Gyeongnam

[Asia Economy Reporter Kiho Sung] Nexen Tire has decided to halt operations at its Yangsan plant due to the impact of the novel coronavirus infection (COVID-19). As domestic and overseas automobile manufacturers continue to delay the resumption of production, the ripple effects are spreading to the tire industry.

On the 20th, Nexen Tire announced through a public disclosure that it will suspend operations at the Yangsan plant for 12 days from the 18th to the 29th. Production is scheduled to resume on the 30th.

Nexen Tire has two domestic plants, including Yangsan and Changnyeong in Gyeongnam Province. Among them, the Yangsan plant is Nexen Tire's largest domestic factory, producing 18 million tires annually. Of these, 70% are exported to Europe and North America. Therefore, it is analyzed that the suspension of automobile manufacturers' operations in Europe and North America has directly affected Nexen Tire.

The company explained that the reason for the suspension is inventory adjustment due to the holidays of domestic and international automobile manufacturers and changes in the sales market situation caused by COVID-19. Additionally, during the suspension period, the company plans to improve production efficiency and conduct inspections of major facilities.

Earlier, Hankook Tire & Technology (Hankook Tire) stopped operations at two domestic plants, Daejeon and Geumsan, from the 14th to the 16th.

Kumho Tire also plans to suspend operations at three domestic plants in Gwangju, Gokseong, and Pyeongtaek in two phases. The first suspension occurred from the 12th to the 15th, and the second shutdown is scheduled from the 23rd to the 25th. Additionally, Kumho Tire is negotiating with the labor union to suspend plant operations from the 30th of this month to early May.

Meanwhile, Nexen Tire's European plant in the Czech Republic initially planned to suspend operations from the 26th of last month to the 9th of this month but extended the suspension until the 13th.

This content was produced with the assistance of AI translation services.