Nexen drastically reduces production in China.
Hankook Tire significantly expands its Hungarian plant.
Kumho expands production in Vietnam and Korea.

Korea’s tire industry has accelerated the expansion of overseas local production and the restructuring of its supply chains.
According to the tire industry, Nexen Tire plans to reduce the proportion of Chinese-made tires in its European sales volume from approximately 15% last year to about 4% this year. Shipments from its Chinese factories to Europe have also been cut from about 3 million tires annually to around 600,000. The company’s strategy is to replace those volumes with production from its plants in South Korea and the Zatec plant in the Czech Republic to minimize tariff-related risks.

Among South Korean manufacturers, a tariff rate of 29,9% was imposed on tires produced in China by Nexen Tire and Kumho Tire, respectively — while a lower tariff rate of approximately 3.4% was imposed on products of Hankook Tire & Technology, which has a relatively lower proportion of production in China. It is reported that the EU determines tariff rates by comprehensively considering factors such as the proportion of Chinese-made products, and the ratio of local production in Europe.
Nexen Tire is accelerating the adjustment of its production bases to reduce the tariff burden on Chinese-made tires. The company is shifting a substantial portion of exports to Europe previously supplied from its Qingdao factory in China to a parallel production system at its domestic plants in Yangsan and Changnyeong, South Gyeongsang Province — as well as at its plant in the Czech Republic. The strategy aims to preemptively reduce the proportion of Chinese-made products subject to tariffs and replace a significant portion of European sales volume with locally produced goods.
The tire industry as a whole is also accelerating its move to reduce tariff risks. Kumho Tire, which manufactures approximately 30% of its total global production in China, has embarked on structural improvements and supply-chain diversification. It is pursuing plants to expand the proportion of high-value-added products and reorganize a portion of its production volume in China to focus on factories in Vietnam and Korea. Furthermore, it is accelerating the establishment of a local production system in Europe, aiming to complete its new Hampyeong plant in 2027 and its Poland plant in 2028.
Hankook Tire & Technology, which has a relatively low proportion of its production in China, plans to maintain its existing strategy while focusing on strengthening production competitiveness in Europe. Following the launch of its Hungarian plant since 2007, the company has recently expanded its production lines to include tires for trucks and buses through a large-scale expansion, securing an annual production capacity of approximately 18 million units.
 
 
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