Nokian Tyres Breaks Ground on the World's First Zero CO2 Emission Tire Factory in Romania

Nokian Tyres, has broken ground on its new tire factory in Oradea, Romania. The ceremony marked the groundbreaking of the tire industry's first zero CO2 emission factory, with the presence of Romania's Prime Minister, Nicolae Ciucă, and other high-level officials. The factory is scheduled to start commercial production in 2025, primarily serving customers in Central Europe.

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Nokian Tyres
Published on
May 11, 2023

Nokian Tyres, has broken ground on its new tire factory in Oradea, Romania. The ceremony marked the groundbreaking of the tire industry's first zero CO2 emission factory, with the presence of Romania's Prime Minister, Nicolae Ciucă, and other high-level officials. The factory is scheduled to start commercial production in 2025, primarily serving customers in Central Europe.

The factory is being built in the city of Oradea, an important regional and European hub for many transport routes. The total investment is estimated to be approximately EUR 650 million, which is among the most significant investments in Romania in recent years. Nokian Tyres is waiting for the final decision from the EU for its EU funding application for some EUR 100 million, which the Romanian government already approved earlier this year.

The annual capacity of the factory will be 6 million tires, with expansion potential in the future. The factory will focus on producing larger rim size passenger and SUV tires that will be primarily sold in the Central European market. The site will also house a distribution facility for storage and distribution of tires. The combined built-up area totals some 100,000 m2.The factory's most remarkable feature is its zero CO2 emission status, which means that energy used at the factory comes from renewable sources, and steam needed for the tire manufacturing process is generated entirely without fossil fuels. The site location in Romania supports this target, as the company can utilise green energy produced near the site.

“We are very proud to build the first zero CO2 emission factory in the tire industry. We are committed to building a sustainable and competitive tire production facility,"
Jukka Moisio, President and CEO of Nokian Tyres.

The planned headcount of the Romanian factory is about 500 people, with Nokian Tyres hiring for both production and managerial positions. The company will cooperate with local schools in Oradea to provide the right type of training to future employees. Nokian Tyres will bring some 20–25 people from Finland to Oradea to help set up the factory.

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

In addition to building a new passenger car tire factory in Oradea, Nokian Tyres continues to increase capacity at its existing factories in Finland and the US and grow contract manufacturing. The company aims to build a global capacity of 15 million tires by 2027.

The groundbreaking of Nokian Tyres' new factory is a significant milestone for the company and the tire industry as a whole. The zero CO2 emission status sets a new standard for sustainability in the industry and reflects Nokian Tyres' commitment to building a sustainable future. With the new factory, the company aims to strengthen its position in the Central European market while providing new job opportunities in the region.

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