European Commission approves EUR 99,5 million aid in support of Nokian Tyres` new Romanian plant

The European Commission has approved, under EU State aid rules, a EUR 99,5 million (RON 495,2 million) Romanian measure in favour of Nokian Tyres. The aid will support the establishment of a new zero carbon dioxide emission factory for passenger car tyres in Oradea. The measure will contribute to the EU’s strategic objectives relating to job creation, regional development, and to the green transition of the regional economy.

Romania notified the Commission of its plan to support Nokian Tyres in the establishment of a new zero carbon dioxide emission tyre factory in Oradea, Bihor County (in the North-West of Romania, near the Hungarian border). Under the measure, the aid will take the form of a direct grant. The investment is estimated to total approximately EUR 650 million.
The annual capacity of the factory is expected to be 6 million tyres with an expansion potential in the future. The site will also house a facility for storage and distribution of tyres. The planned headcount of the Romanian plant is about 500 employees. 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.

“Central Europe is an important market for us, and the investment shows our commitment to the market. The new site will be strategically located close to our customers. 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”, said Adrian Kaczmarczyk, SVP, Supply Operations, at the time the project was first announced.
“We are committed to building a zero CO2 emission factory – the first in our industry. The site location in Romania supports this target as we can utilise green energy produced near the site. In addition, we are critically evaluating the production processes to find the most sustainable ways to produce tyres”, Kaczmarczyk continued.