The European Commission said it had approved a Romanian state aid scheme of 495.2m lei (US$108.7m/EUR99.5m) to support Finland’s Nokian Tyres constructing the claimed world first tyre production plant with zero carbon-dioxide emissions.
The green factory in Romania’s northwestern city of Oradea, Bihor county, would contribute to the EU’s strategic objectives relating to job creation, regional development, and to the green transition of the regional economy, the commission said in a statement cited by SeeNews.com. Total investment value is EUR650m.
Go deeper with GlobalData
The plant would create around 500 direct jobs and have capacity for 6m tyres a year.
In November 2022, Nokian announced a greenfield investment project to build a passenger car tyre factory in Romania as part of plans to secure the supply of its products after exiting Russia a month earlier, SeeNews.com noted. In January 2023, the Romanian government said it would grant Nokian Tyres state aid for the construction of the Oradea factory.
Last month, the European Investment Bank (EIB) said it was extending a EUR150m loan to the Finnish manufacturer for the plant construction. The factory, spanning about 100,000 sq m, would begin operations in early 2025 and reach full capacity in 2027, the EIB said at the time.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
