Tire Maker Expands Europe Warehouse

Nexen Tire recently made two significant moves in Europe: warehousing and new energy vehicle (NEV) tire supply. On June 18th, the company's Zatek plant in the Czech Republic completed the expansion of its automated finished goods warehouse and officially commenced operations.

Simultaneously, Nexen entered BYD's OEM supply chain for the first time, supplying tires for the Seal 06 and Seagull electric vehicles. These two developments, respectively aimed at improving supply chain efficiency and optimizing customer structure, will directly boost Nexen's business in Europe and the NEV market.

The newly operational automated warehouse directly serves orders across Europe. The warehouse, with a floor area of ​​7,104 square meters and a height of 51 meters, is equipped with automated stacking, sorting, and inbound/outbound systems, replacing the previous manual warehousing operations.

After the expansion, the Zatek plant's tire storage capacity increased from 530,000 sets to 830,000 sets, an increase of approximately 57%. Nexen stated that due to the continuous increase in Nexen orders in Europe, the existing warehouse capacity was clearly insufficient to keep up with the delivery pace. The opening of the new warehouse will shorten delivery times for European customers and reduce delays caused by warehousing bottlenecks.

This expansion is of practical significance to Nexen's European business. The Czech plant has long supplied original equipment tires (OEM) to local automakers such as Volkswagen and Skoda, serving both gasoline and new energy vehicles. In recent years, the penetration rate of new energy vehicles in Europe has increased, coupled with fluctuating cross-border logistics costs and stricter trade requirements.

The model of relying entirely on overseas shipments faces problems such as slow inventory turnover and uncontrollable costs. Increasing local warehousing capacity in Europe allows Nexen to utilize localized delivery more effectively, reducing its dependence on sea freight and improving supply stability.

On the new energy vehicle business side, Nexen's cooperation with BYD has been finalized for the first time. In June 2026, the company confirmed its entry into BYD's OEM supply chain, providing OEM tires for the Seal 06 and Seagull models. This marks Nexen's first OEM collaboration with BYD, signifying that its products are entering the supply list of a leading domestic new energy vehicle manufacturer.

BYD is currently accelerating its overseas market expansion, with its pure electric vehicles already being exported in batches to Europe, Southeast Asia, and Australia. The growth in overseas sales directly drives the demand for OEM tires. Pure electric vehicles are heavy and have high starting torque, while the market has clear requirements for range and quietness.

Tires need to match these vehicle requirements in terms of low rolling resistance, load-bearing capacity, and wear resistance. Nexen has accumulated years of experience in new energy tire R&D, with its tread compounds and structural designs primarily tailored to electric vehicle scenarios. Its product performance meets the installation standards of mainstream pure electric vehicles, which is the foundation for this collaboration.

From an industry perspective, both actions have clear objectives. Expanding its European warehouses addresses practical logistical issues and maintains stable delivery capabilities to European automakers. Entering BYD's supply chain expands its original equipment (OEM) channels for new energy vehicles under the trend of electrification, leveraging automakers' overseas networks to enter more markets.

For Nexen, its established presence in the mature European market requires more reliable local service support, while its new energy tire business needs stronger customer endorsement. Simultaneously pursuing these two initiatives is a pragmatic approach to addressing the current changes in the automotive industry.

Subsequently, as the new Czech warehouse reaches full production capacity and BYD tires are installed in batches, Nexen's delivery efficiency in Europe will continue to improve, and the proportion of new energy tires in the company's business is expected to gradually increase.