Nokian Tyres broke ground today for the company’s new passenger car tyre factory in Oradea, Romania.
Claimed to be the tyre industry’s first zero CO2 emission factory, the groundbreaking ceremony was attended by Nokian Tyres chief executive Jukka Moisio, the Prime Minister of Romania, Nicolae Ciucă, as well as other high-level Romanian and Finnish officials.
Commercial tyre production in the factory is scheduled to start in 2025, serving customers especially in central Europe.
“This investment is a significant strategic step enabling our future growth and development,” said Moisio. “A world-class manufacturing facility in Europe is a key step in getting additional capacity and creating a balanced manufacturing platform as we build the new Nokian Tyres.”
“We are very proud to build the first zero CO2 emission factory in the tyre industry. This means for instance that energy used at the factory comes from renewable sources and steam needed for the tyre manufacturing process is generated fully without fossil fuels.
“The site location in Romania supports the target as we can utilise green energy produced near the site. We are committed to building a sustainable and competitive tyre production facility,” he added.
The greenfield factory is being built in the north-west of Romania in the city of Oradea, an important regional and European hub of many transport routes.
The total investment is estimated to be approximately €650 million. Nokian Tyres says it is waiting for the final decision from the European Union for its EU funding application for €100 million, which the Romanian government already approved earlier this year.
The annual capacity of the factory is said by Nokian to be six million tyres with expansion potential in the future.
The factory will concentrate on the production of larger rim size passenger and SUV tyres that will be primarily sold in the central European market.
The site will also house a distribution facility for storage and distribution of tyres. The combined built-up area totals 100,000 m2.
Nokian expects the first tyres to be produced in the second half of 2024. Commercial tyre production should start in early 2025.
The new Romanian factory is expected to employ about 500 people.