Nexen Tire Opens Automated Warehouse at Czech Plant

Nexen Tire has opened a fully automated warehouse at its European manufacturing plant in Žatec, Czech Republic. The development increases on-site storage capacity by about 57%, giving the manufacturer more room to manage higher output and seasonal demand. It also strengthens Nexen’s ability to supply European customers directly from its regional production base.

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More capacity beside European production

The 7,104-square-metre logistics centre stands 51 metres high and can hold approximately 830,000 tyres. Previous storage capacity at the site was about 530,000 units.

Nexen began the warehouse expansion project in October 2024. The company said the additional 300,000 spaces will support rising production and improve the movement of tyres between manufacturing, storage and dispatch.

The investment follows the second-phase expansion of the Žatec factory. That project increased its planned annual production capacity from 5.5 million to around 11 million tyres.

As output rises, storage and dispatch capacity must grow alongside manufacturing. Otherwise, finished tyre inventories can create bottlenecks between production lines and customer deliveries.

Automated handling and RFID tracking

The new facility uses automated inbound and outbound handling systems. Radio-frequency identification, or RFID, technology tracks products as they move through the warehouse.

Nexen said the system will improve inventory accuracy and create better visibility from production through to shipment. Automation should also reduce manual handling within the high-bay facility.

In practice, the added capacity gives the company more flexibility during seasonal demand peaks. These periods can place significant pressure on European tyre inventories, particularly around summer and winter changeovers.

The warehouse also supports shorter regional supply routes by placing more finished stock beside the company’s European production lines.

Supporting Nexen’s European expansion

The Žatec plant began operating in 2019 and has become central to Nexen’s European manufacturing network. The company has since expanded production, distribution and original equipment supply across the region.

Recent Tyre News reporting has highlighted this wider development. Nexen has secured original equipment tyre fitments for BYD electric vehicles and restructured its European leadership operations.

Tyre News has also reported on Nexen’s additional distribution hubs serving international markets. Together, the developments point to closer coordination between European manufacturing, sales and distribution.

John Bosco Hyeon Suk Kim, chief executive of Nexen Tire, described the warehouse as an investment in integrated production and logistics capability rather than storage alone.

He said the company intends to continue developing the operational capacity of its European plant as it pursues further regional growth.

For tyre distributors and retailers, the practical test will be whether the investment improves product availability during demand peaks. Its value will also depend on how effectively Nexen connects factory output with replacement and original equipment requirements across Europe.

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Tagged with: Nexen Tire, Žatec tyre plant, automated tyre warehouse, European tyre supply, RFID tyre tracking, tyre logistics, warehouse automation, tyre manufacturing, supply chain resilience, Czech Republic, OE tyre supply

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