The European Investment Bank (EIB) is lending Nokian Tyres EUR150 million for the construction in Romania of the world’s first plant for producing passenger car tyres without emitting carbon dioxide (CO2). The credit to Finland-based Nokian Tyres is for a factory in the northwestern Romanian city of Oradea.
The facility will produce up to 6 million tyres/year once full capacity is reached in 2027. It will start commercial operations early 2025 and ramp up capacity in 2026. The site will include a storage facility for tyre distribution.
EIB says the support highlights its commitment to climate action as well as to regional development and social cohesion in the European Union. The Oradea factory, due to be completed in 2027, will lead to around 500 full-time jobs and help counter a demographic decline in the area.
“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 factory in Oradea will be around 100,000 sq m 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 project is central to Nokian Tyres’ global strategy to develop innovative, reliable and sustainable tyres.
“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 sustainability of the tyre industry.”
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. Beyond climate action, this project addresses several Sustainable Development Goals including SDG 8: Decent Work and Economic Growth, SDG 9: Industry, Innovation, and Infrastructure, SDG 12: Responsible Consumption and Production, and SDG 13: Climate Action.