Strong R&D Investment
Nexen Tire recorded 1.43 trillion won (US$1.3 billion) in sales and 112 billion won (US$102 million) in operating profits in 2011. The amounts reached 885.8 billion won (US$805.4 million) and 102.6 billion won (US$93.3 million) in the first half of last year, respectively. The company’s operating profit ratio has remained over 10 percent since 2012.
At present, Nexen Tire is running R&D institutes in Korea, Frankfurt, Ohio, and Qingdao. The R&D centers are working closely together to refine their technological strengths and come up with next-generation products. This year, the company formed a strategic partnership with IDIADA Automotive Technology in Spain, too. Nexen Tire is the first company in the industry that has won all of the IF, Red Dot, IDEA, and G-MARK Design Awards.
Last year, the manufacturer announced a plan to build research facilities focusing on eco-friendly and high-tech tire design and production. The facilities will consist of a performance research center, a material research center, and a design center. A total of 165.6 billion won (US$150.6 million) will be invested in a 17,105 m2 lot to construct a nine-floor building with two basement levels. It is scheduled to be completed in 2017. The new building will serve as the hub of the company's existing research centers.
The number of its research personnel increased from 30 to 350 or so in Korea and to 110 abroad between 2000 and last year. The company is going to employ about 200 more research engineers by 2018.