Finnish company Nokian Tyres inaugurated its passenger car tire factory in Oradea, Romania, on September 19, a project with a total value of EUR 650 million. The new facility operates without utilizing any fossil energy, making it the world's first full-scale tire factory with zero CO2 emissions. 

The factory inauguration marks the completion of a 2-year long project and sets the ground for commercial production in early 2025.  

Jukka Moisio, President and CEO of Nokian Tyres, stated: "We are very pleased to be inaugurating our Oradea factory today. It will strengthen our capability to serve our customers in Central Europe and beyond and support our growth as planned toward net sales of EUR 2 billion. With our full-scale zero CO2 emission tire factory, we are ready to lead the industry and set the new standard for sustainable tire manufacturing."

According to Adrian Kaczmarczyk, SVP, Operation Excellence at Nokian Tyres, all the electricity used at the Oradea factory is CO2 emission-free. Part of the electricity used in the factory is generated by on-site solar power units, while the steam used to cure the tires is generated by electric boilers that use fully CO2 emission-free electricity instead of the usual fossil fuels such as coal or gas. 

The new plant produced its first tire in July 2024, and the project is ramping up to the annual capacity of 6 million tires, with expansion potential in the future. The factory will focus on passenger car tire production to be primarily sold in the Central European market, the company said.

The total factory area is some 54 hectares. It includes the production unit, a distribution facility for the storage and distribution of tires, and mixing, utility, and administrative buildings. The combined built-up area totals approximately 100,000 sqm.

"Nokian Tyres chose Oradea in the North-West of Romania as the location for the new tire factory as a result of a thorough evaluation, including more than 40 sites in various European countries. Among the criteria supporting the decision were talent, business environment, infrastructure, real estate and utilities, operational cost, and risks," reads the press release.

The project's total value is approximately EUR 650 million, which positions the Finnish company as one of the largest foreign investors in Romania in recent years. To finance its sustainable tire manufacturing investment, Nokian Tyres will receive state aid from the Romanian government worth some EUR 100 million and an investment loan from the European Investment Bank worth EUR 150 million.   

Along with the construction work, Nokian Tyres conducted a recruitment campaign to attract skilled employees, with a focus on local talents in Bihor County. The planned team of the Oradea factory is about 500 people. By the end of 2024, the number is expected to reach 300, and the process will continue in 2025. 

irina.marica@romania-insider.com

(Photo source: Nokiantyres.com)