Finnish group Nokian Tyres will invest EUR 650 mln in greenfield factory in Romania after Russia exit
Finland-based group Nokian Tyres announced on Tuesday (November 1) that it will invest some EUR 650 million in a new passenger car tire factory in Romania that will become operational at the end of 2024. This is one of the biggest investments announced in Romania’s automotive sector in recent years and will consolidate the country’s position as a tire manufacturing hub.
This investment decision comes after the Finnish group decided earlier this year to withdraw from Russia due to the war in Ukraine and international sanctions against the Kremlin. In October, Nokian Tyres signed an agreement to sell its Russian operations and accelerated its investment plans for a new factory in Europe.
The new greenfield factory will be located in Oradea in the North-West of Romania, near the Hungarian border. It will have an annual capacity of 6 million tires with expansion potential in the future. The site will also house a distribution facility for the storage and distribution of tires.
Construction is scheduled to begin in early 2023 and the first tires are estimated to be produced in the second half of 2024. Commercial tire production is expected to start in early 2025.
“This investment is a significant strategic decision enabling our future growth. A world-class manufacturing facility in Europe is a key step in getting additional capacity and creating a balanced manufacturing platform as we start building the new Nokian Tyres without Russia,” said Jukka Moisio, President and CEO of Nokian Tyres.
The Romanian factory will have about 500 employees and will concentrate on the production of larger rim size passenger and SUV tires 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,” explained Adrian Kaczmarczyk, SVP, Supply Operations.
“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 utilize green energy produced near the site. In addition, we are critically evaluating the production processes to find the most sustainable ways to produce tires,” he added.