Nexen Tire is increasing the share of renewable energy at its domestic production facilities. This move comes in response to the rising importance of carbon emissions during the production phase in the competition for supplying original equipment (OE) tires.
On August 24, Nexen Tire announced the introduction of a Power Purchase Agreement (PPA) for renewable energy at its Yangsan plant and plans to expand solar power generation at its Changnyeong and Yangsan facilities.
Previously, Nexen Tire signed a PPA with SK Innovation E&S. This direct PPA allows electricity users to contract directly with renewable energy suppliers for their power needs.
Starting in November, approximately 4 megawatts of renewable energy from a combination of onshore wind and solar power will be supplied to the Yangsan plant. The annual generation is expected to be around 6 gigawatt-hours, enough to power about 1,600 households for a year. This initiative is projected to reduce greenhouse gas emissions by approximately 2,700 tons of CO₂ annually.
Nexen Tire will also increase its own solar power generation capacity. The Changnyeong plant will transition its existing rooftop leasing operations to self-generation as contracts expire, with plans to establish over 10 megawatts of solar power facilities by 2028. This capacity will cover about 9% of the plant's total energy consumption with renewable energy. The company is also considering installing solar power generation facilities at the Yangsan plant.
The push for renewable energy is driven by the carbon reduction demands from global automakers. European premium brands such as Mercedes-Benz, BMW, Audi, and Porsche have begun managing carbon emissions not only from their own operations but also from their supply chains.
Nexen Tire has announced its goal to reduce greenhouse gas emissions (Scope 1 and 2) by 58.8% by 2034, as approved by the Science Based Targets initiative (SBTi).
A Nexen Tire representative stated, "The transition to renewable energy is a strategic investment to secure sustainable competitiveness in the global market, beyond mere regulatory compliance. We will gradually expand the adoption of renewable energy across our domestic and international production bases."
Meanwhile, Nexen Tire reported first-half revenues of 1.7296 trillion won and an operating profit of 88.5 billion won, marking a 9.8% increase compared to the same period last year. Notably, second-quarter sales in Europe reached 407.2 billion won, surpassing 400 billion won for the first time in a single quarter, highlighting significant growth in the European market.
* This article has been translated by AI.
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