Nexen Tire is establishing a dedicated winter tire testing center at UTAC’s proving ground in Ivalo, Finland, expanding the company’s research capabilities in extreme cold conditions. The South Korean tire maker plans to begin full operations by December 2025 at the facility located 300 kilometers north of the Arctic Circle.
The move addresses challenges Nexen has faced with limited testing slots at UTAC under previous short-term contracts. The dedicated facility will extend the company’s winter testing period from one month to up to four months annually, providing more consistent access throughout the testing season.
The ₩45 billion (US$32.8 million) investment includes research offices, workshops, and specialized snow and ice tracks spanning an area equivalent to 20 football fields. UTAC, which operates the larger proving ground containing Nexen’s new center, will manage construction and operations.
Nexen will use the facility to conduct testing for the Three-Peak Mountain Snowflake (3PMSF) certification, the standard winter tire certification in Europe. This capability could strengthen the company’s position in the European market, which accounts for approximately 40% of its total sales.
The investment comes as European winter tire regulations tighten, increasing pressure on manufacturers to demonstrate performance in harsh conditions. Nexen also operates winter testing facilities in South Korea and New Zealand, allowing for year-round development.
Travis Kang, Nexen’s Global CEO, framed the investment as critical for securing technological competitiveness in winter tire design, where specialized rubber compounds and tread patterns are essential for maintaining grip on surfaces up to eight times more slippery than dry pavement.
