Nexen Tire accelerates renewable energy shift at main plants

To meet strict carbon reduction standards required by vehicle manufacturers, Nexen Tire secures renewable energy contracts and expands solar capacity across its manufacturing footprint.

Global tire manufacturer NEXEN TIRE has accelerated its transition toward renewable energy by signing a Direct Power Purchase Agreement (DPPA) with energy provider SK Innovation E&S. Starting in November, the long-term contract will supply approximately 4 MW of onshore wind and solar power to its Yangsan plant, delivering an estimated 6 GWh annually and eliminating roughly 2,700 metric tons of CO₂ emissions per year.

Alongside the supply agreement, the manufacturer is expanding its on-site renewable generation infrastructure. At its Changnyeong manufacturing facility, existing rooftop solar leases will be converted to self-generation systems, scaling total solar capacity past 10 MW by 2028. This expansion will transition approximately 9% of the facility’s total electrical consumption to renewable sources, while similar solar installations are currently being evaluated for the Yangsan plant.

For tire distributors and automotive OEMs, the operational shift addresses growing supply-chain compliance demands surrounding original equipment fitments. Validated by the Science Based Targets initiative (SBTi), the strategy supports NEXEN TIRE’s target to reduce Scope 1 and Scope 2 greenhouse gas emissions by 58.8% by 2034 against a 2023 baseline.