Nexen Tire is enhancing its renewable energy utilization in its Korean plants by signing a direct power purchase agreement and expanding solar power generation as global car manufacturers urge suppliers to reduce emissions.
The tire manufacturer announced that it has entered into a renewable energy direct power purchase agreement with SK Innovation E&S, enabling it to directly procure electricity from a renewable energy provider.
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Starting in November, the Yangsan facility in South Gyeongsang Province will obtain approximately 4 megawatts of renewable energy from a combination of onshore wind and solar power.
The setup is anticipated to produce approximately 6 gigawatt-hours of electricity each year, which is sufficient to power around 1,600 households of three people for a year, while reducing greenhouse gas emissions by around 2,700 metric tons of carbon dioxide per year.
Nexen Tire intends to enhance solar power production at its Changnyeong facility in South Gyeongsang Province by progressively substituting leased rooftop systems with those it owns and manages. The Changnyeong facility is anticipated to exceed 10 megawatts of solar power by 2028, enabling renewable energy to represent roughly 9 percent of the plant’s overall electricity usage. The company is also exploring the possibility of setting up and managing its own solar power generation systems at the Yangsan facility.
Nexen Tire provides original-equipment tires to European luxury car manufacturers such as Mercedes-Benz, BMW, Audi, and Porsche, making the reduction of emissions during manufacturing increasingly vital to its partnerships with these automakers. The organization has also gained endorsement from the Science Based Targets initiative for an objective of reducing its Scope 1 and 2 greenhouse gas emissions by 58.8 percent by 2034 compared to 2023 levels.
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A Nexen Tire representative stated that the transition to renewable energy is a tactical investment focused on enhancing sustainable competitiveness in international markets instead of merely complying with regulations.
Earlier, Nexen Tire has obtained a contract to provide original equipment tires for the newly revamped Audi A6, reinforcing a partnership that highlights the South Korean tire manufacturer’s expanding role among Europe’s luxury car manufacturers. The firm announced that its N'FERA Sport ultra-high-performance tire will be equipped on the new Audi A6 in sizes of 18 inches and 19 inches.
The updated A6 serves as Audi's premier midsized luxury sedan and represents the model's initial complete overhaul in seven years. Nexen Tire stated that the vehicle requires robust high-speed stability and a quiet ride, highlighting tire performance as essential to the overall driving experience.
The N'FERA Sport is crafted for high-performance cars and incorporates enhanced internal materials to evenly distribute ground pressure and vehicle loads. The firm claimed the tire provides excellent handling and braking capabilities on dry and wet surfaces.
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Nexen Tire stated that the product also received top scores in summer tire evaluations performed by Auto Bild magazine from Germany and the Allgemeiner Deutscher Automobil-Club. The new agreement comes after Nexen Tire's earlier original equipment supply arrangements for Audi models like the A3 and the eighth-generation A6.
The firm additionally provides original equipment tires to leading international automakers, such as Volkswagen Group, Porsche, Mercedes-Benz, BMW, and Audi. Nexen Tire stated that broadening supply agreements for original equipment with leading global automakers also fosters ongoing demand for replacement tires as vehicle owners eventually buy new ones.