Finnish tyre maker Nokian Tyres recently opened its passenger car tyre factory in Oradea, Romania. The factory inauguration marks the successful completion of a two-year long project and sets the ground for commercial production in early 2025.
The factory produced its first tyre in July 2024, and the project is ramping up to the capacity of 6 million tyres/year, with expansion potential in the future. The factory will focus on passenger car tyre production to be primarily sold in the Central European market as it is strategically located close to that area’s customers.
The total value of the project is approximatively EUR650 million, which positions the Finnish company as one of the largest foreign investors in Romania in the recent years. To finance its sustainable tyre manufacturing investment, Nokian Tyres will receive state aid from the Romanian government worth some EUR100 million and an investment loan from European Investment Bank worth EUR150 million.
The factory operates without utilising any fossil energy, making it the world’s first full-scale tyre factory with zero CO2 emissions, the firm adds.
“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 EUR2 billion. With our full-scale zero CO2 emission tire factory we are ready to lead the industry and set the new standard for sustainable tyre manufacturing,” said Jukka Moisio, President/CEO of Nokian Tyres.
At the Nokian Tyres Oradea factory, no energy generated by fossil fuels is used. This enables the whole factory to operate with zero CO2 emissions. This is achieved through a combination of solutions.
“The factory makes Nokian Tyres, once more, a pioneer of the tire industry. All electricity used at the Romania Oradea factory is CO2 emission free. Part of the electricity used in the factory is generated by on-site solar power units. Steam used to cure the tyres is generated by innovative electric boilers which use fully CO2 emission free electricity instead of the usual fossil fuels such as coal or gas. In addition, the tyre manufacturing process is very energy efficient as we are only utilising the most modern technology and machinery. With our new Oradea factory, we are truly demonstrating our commitment to sustainability,” says Adrian Kaczmarczyk, SVP, Operation Excellence, Nokian Tyres.
The total factory area is some 54 hectares. The facility includes the production unit, a distribution facility for storage and distribution of tyres, and mixing, utility and administrative buildings. The combined built-up area totals approximately 100,000 sq m.
Nokian Tyres says it chose Oradea in North-West of Romania as the location for the new tyre 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.
Along with the construction work, Nokian Tyres conducted a recruitment campaign for attracting skilled employees, with a focus on local talents in Bihor County. The planned headcount 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.