Nokian Tyres’ will invest in a new tyre factory in Romania. The new greenfield factory will be located in Oradea in the North-West of Romania, near the Hungarian border. Source: Timberbiz
The annual capacity of the factory will be six million tyres with an expansion potential in the future. The site will also house a distribution facility for storage and distribution of tyres. The total investment is estimated to be approximately EUR 650 million. Construction is scheduled to begin in early 2023 and the first tyres are estimated to be produced in the second half of 2024.
Commercial tyre 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,” Jukka Moisio, President and CEO of Nokian Tyres said.
The planned headcount of the Romanian factory is about 500 employees.
“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,” Adrian Kaczmarczyk, SVP, Supply Operations said.
“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 tyres.”
In June 2022, decided on a controlled exit from Russia. Due to the war and the subsequent, tightening sanctions it is no longer feasible nor sustainable for Nokian Tyres plc to continue operations in Russia. In October, Nokian Tyres signed an agreement to sell its Russian operations.
To secure supply of its products, Nokian Tyres decided earlier in the year to expedite its plans to invest in new production capacity in Europe, and the Romanian factory is a key element of these plans. In addition, Nokian Tyres continues to increase capacity at its factories in Finland and the US, aiming to become geographically more diversified in its manufacturing operations.
