Signs Direct Power Purchase Agreement (DPPA) for approximately 4 MW of onshore wind and solar power with SK Innovation E&S, a leading Korean energy company

Expands solar self-generation at Changnyeong and Yangsan plants — strengthening its sustainability commitment

NEXEN TIRE, a leading global tire manufacturer, announced that it is accelerating its shift to renewable energy at its Korean production sites. As part of this push, the company has signed a Direct Power Purchase Agreement (DPPA) for its Yangsan plant in Korea and is expanding solar self-generation at its Changnyeong and Yangsan plants, with the aim of raising the share of renewable energy used in its manufacturing operations and strengthening its sustainability commitment.

NEXEN TIRE has signed a DPPA with SK Innovation E&S. A DPPA enables an electricity consumer to purchase renewable electricity directly from a renewable energy provider under a long-term contract, ensuring a stable supply of renewable electricity.

Under the agreement, NEXEN TIRE will begin sourcing approximately 4 MW of onshore wind and solar power starting at its Yangsan plant in November. With an expected annual output of around 6 GWh, the initiative is projected to reduce greenhouse gas emissions by about 2,700 tCO₂ per year.

NEXEN TIRE is also expanding its in-house solar generation facilities. At the Changnyeong plant, rooftop solar systems currently operated under lease agreements will be gradually converted to self-generation as existing contracts expire, expanding total solar capacity to over 10 MW by 2028 — transitioning roughly 9% of the plant's total electricity consumption to renewable energy. The Yangsan plant is also considering the installation and operation of its own solar generation facilities.

With a strong European footprint, NEXEN TIRE supplies original equipment (OE) tires to leading premium automakers in the region — a customer base that increasingly requires suppliers to lower greenhouse gas emissions during production. In this environment, cutting emissions at the production stage has become a direct driver of market competitiveness. NEXEN TIRE previously announced a target to reduce Scope 1 and 2 greenhouse gas emissions by 58.8% by 2034 from a 2023 baseline, which has been validated by the Science Based Targets initiative (SBTi).

"The shift to renewable energy is not merely a response to regulations, but a strategic investment to secure sustainable competitiveness in the global market," said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. "We will continue to expand the adoption of renewable energy across our production sites both in Korea and abroad in a phased manner."

Tagged: Direct Power Purchase Agreement

NEXEN TIRE Signs Direct Power Purchase Agreement for a Tire Plant in Korea, Accelerating Shift to Renewable Energy