Nokian selects Romania for €650m European tire factory

Nokia, Finland – Nokian Tyres plc is to invest €650 million in a greenfield passenger car tire factory in Romania as part of its strategy to exit Russia and bolster its market presence, particularly in central Europe.

The planned facility – to be 'the first zero CO2 emission factory in the tire industry' – will be located in Oradea in northwestern Romania, near the Hungarian border, Nokian announced 1 Nov.

Construction is scheduled to begin in early 2023 and the first tires are estimated to be produced in the second half of 2024, according to the tire maker's statement.

Large-scale tire production is slated to start in early 2025, the Finnish manufacturer noting that the plant will have an annual capacity of 6 million units with "expansion potential in the future.”

The site will also include major facilities for storage and distribution of tires.

“This investment is a significant strategic decision enabling our future growth,” said Jukka Moisio, president and CEO.

“A world-class manufacturing facility in Europe is a key step… as we start building the new Nokian Tyres without Russia,” he added.

The facility is expected to employ 500 people and will concentrate on the production of larger rim size passenger and SUV tires that will be primarily sold in the central European market.

“Central Europe is an important market for us, and the investment shows our commitment to the market,” said Adrian Kaczmarczyk, SVP, supply operations.

Nokian said it selected the site after a thorough evaluation of over 40 locations and several factors, such as skilled workforce availability, logistical advantages and stable business environment,.

“It was clear that Oradea was the best choice for our new factory,” Kaczmarczyk added.

In terms of the factory’s zero CO2 emissions, Kaczmarczyk said the location can utilise green energy produced near the site.

In addition, Nokian is “critically evaluating” its production processes to find "the most sustainable ways to produce tires", Kaczmarczyk added.

Nokian announced in June that it was exiting from Russia due to the war on Ukraine and the subsequent, tightening sanctions on Moscow.

In October, the Finnish tire maker signed an agreement to sell its Russian operations to local buyer Tatneft.