Finnish group Nokian Tires has started work on the car tyre factory it plans to build in western Romania at Oradea, an investment estimated at EUR 650 mln.

Romania’s Government is ready to extend an ad-hoc grant of up to EUR 100 mln for this, but only after the European Commission’s permit, Profit.ro reported.

In order to counteract the effects of this exit from Russia, Nokian Tires intends to establish in Oradea, Bihor county, a new production unit for the production of tires for cars in winter, summer and all-season versions.

The new production facility will have a planned capacity of 6 million units per year and incorporate state-of-the-art technology that will enable a high level of automation and precision to minimize defects and waste.

Ad hoc aid is granted outside existing state aid schemes, and EU Member States granting it must demonstrate that the project contributes to a coherent regional development strategy and that, given its nature and size, the project will not distort competition. The aid scheme or ad hoc aid refers to the initial investment but also to operating support. 

andrei@romania-insider.com

(Photo source: Dreamstime.com)