Nokian Tyres gets EUR 150 million loan from EIB for zero-emissions plant in Romania

Finland-based Nokian Tyres has received a EUR 150 million loan from the European Investment Bank (EIB) for the construction of a plant in the northwestern Romanian city of Oradea.

The plant, described as "the world's first plant for producing passenger car tyres without emitting carbon dioxide (CO2)," is due to be completed in 2027 and will lead to around 500 full-time jobs.

The facility will be around 100,000 sqm and rely on energy from zero CO2 sources, including locally produced green power, as well as on advanced technologies to prevent CO2 emissions, which cause climate change.

The facility will produce up to 6 million tyres annually once full capacity is reached in 2027. It will start commercial operations in early 2025 and ramp up capacity in 2026. The site will include a storage facility for tyre distribution.

The project is central to Nokian Tyres' global strategy to develop "innovative, reliable and sustainable tyres," the company said.

At the same time, the support highlights the EIB's commitment to climate action as well as to regional development and social cohesion in the European Union.

"Our Romania factory will be an industry benchmark with a holistic approach to sustainability, including the use of solely CO2-free energy sources and energy-efficient and highly automated processes," said Nokian Tyres Vice President and Group Treasurer Leena Kaipainen. "The EIB is an important partner in our investment project, and the financing agreement allows us to further develop the sustainability of the tyre industry."

"Our collaboration with Nokian Tyres will have a significant contribution to the development of northwestern Romania," said EIB Vice-President Ioannis Tsakiris. "It will also improve the region's attractiveness for other potential investors."

The loan agreement is fully aligned with the EIB's Climate Action and Environmental Sustainability objectives and adheres to the principles set out in the Paris Agreement.

(Photo: Nokiantyres.com)