"This investment represents an important strategic step for our future development and growth. A world-class production facility in Europe is a key step in expanding capacity and creating a balanced production platform as the new Nokian Tyres plant is built," he said. said Jukka Moisio, President and CEO of Nokian Tyres.
The new factory is built in the North-West region of Romania, in the city of Oradea, an important regional and European hub for many transport routes.
"We are proud to build the first zero CO2 factory in the tyre industry. This means, among other things, that the energy used in the facility comes from renewable sources and the steam required for the tyre manufacturing process is generated without using fossil fuels. The factory location in Romania allows us to use the green energy produced nearby. Our commitment is to build a sustainable and competitive tyre manufacturing plant," continued Jukka Moisio.
The total value of the investment is estimated at approximately €650 million, which makes it one of the largest investments in Romania in recent years. Nokian Tyres is awaiting the final decision from the European Union on its application for EU funding of approximately €100 million, approved by the Government of Romania earlier this year.
The annual capacity of the plant will be 6 million tyres, with potential for expansion in the future. The unit will focus on the production of tyres for cars and larger SUVs, which will be sold mainly in the Central European market. The site will also include a distribution facility for the storage and distribution of tyres. The total built-up area is approximately 100,000 sqm.
The first tyres are expected to be produced in the second half of 2024. Commercial tyre production is scheduled to begin in early 2025.
The Board of Directors of Nokian Tyres approved the investment in November 2022.
"Central Europe is an important market for Nokian Tyres and the investment shows our commitment to it. The new plant will be strategically located close to our customers. After a careful evaluation of over 40 locations and several factors such as the availability of manpower and skilled labor, logistical advantages, and a stable business environment, we decided that Oradea is the best option for our new facility," said Adrian Kaczmarczyk, SVP, Supply Operations.
The planned number of employees of the factory in Romania is approximately 500 people. Nokian Tyres will be hiring for both production and management positions. Hiring will accelerate in 2024 and continue until the plant's full workforce is hired and the facility is up and running.
"We will cooperate with the local schools in Oradea to provide our future employees with the right kind of training. In the beginning, we will use the internal knowledge we acquired when we built the factory in the USA and bring about 20-25 people from Finland to Oradea to help get the facility up and running," said Adrian Kaczmarczyk, SVP, of Supply Operations.
In addition to building a new car tyre factory in Oradea, Nokian Tyres continues to develop capacity at existing factories in Finland and the USA and increase contract manufacturing. The company aims to reach a global capacity of 15 million tyres by 2027.
