Tire manufacturer builds test site in Europe
All-season tires, winter tires, and snow tires can be seen as the track that tire companies must enter. Whether the performance of the developed products is really as strong as imagined, in addition to the data in the laboratory, we must also look at the real experience of use.
However, due to the special testing conditions of snow tires, only a few tire companies can really implement special test field tests before listing.
However, the situation in the industry is improving. In order to further verify the strength of the developed snow tires, South Korean tire manufacturer Nexans decided to establish a special winter tire test center in Ivalo, Finland to help its winter tires sold in Europe to verify the tire performance under extreme climate conditions and assist in the development of its winter tire products.
1. Nexans builds a snow tire test field
On April 9, 2025, Nexans announced that it will establish a special winter tire testing and development center in Ivalo, Finland. It is reported that the center is located in the UTAC test field 300 kilometers north of the Arctic Circle and will include R&D offices, workshops and an ice and snow track about 2 kilometers long.
Automobile testing company UTAC will oversee its construction and operation, and full testing will begin in December. Nexans said that it had previously used UTAC's Finnish plant under a short-term contract.
However, since many tire companies are applying for track testing and Nexans also have increased demand for winter tire testing, UTAC's Finnish plant is obviously no longer able to meet Nexans' scheduling needs. After careful consideration, Nexans decided to build its own test center so that Nexans can arrange tests for its products throughout the winter, and the test cycle can be extended from one month to four months.
Such test results will be more convincing. Of course, the center can not only conduct track testing, but also test the Sanfengshan Snowflake certification, which is the standard for European winter tires. This function can obviously enhance Nexans' competitiveness in the region. "Establishing this test center will be the key to maximizing the efficiency of Nexans' tire comprehensive testing system."
2. Nexans set a new high in 2024
Nexans' good performance in 2024 is one of the confidence that supports its investment in the construction of the test center.
In 2024, Nexans achieved full-year revenue of 284.79 billion won (14.3 billion yuan), a year-on-year increase of 5.4%, setting a new record for its full-year revenue. Net profit and EBIT performed well, reaching 126.7 billion won (637 million yuan) and 407.4 billion won (2.049 billion yuan), respectively. Net profit increased by 22.9% year-on-year compared with 2024.
The stability of European sales is an important reason for Nexen's revenue growth in 2024. The sales growth in the Korean domestic market and the price increase strategy offset the weak sales in the North American market in 2024 to a certain extent.
Among them, Nexen's sales in the European market reached 113.47 billion won (5.7 billion yuan), a year-on-year increase of 12%. The sales proportion of tires 18 inches and above reached 25.8%, an increase of 3.9 percentage points from 2023. This also shows why Nexen has increased its technology layout in the European market - more investment means higher returns.
