NOKIA, Finland—Nokian Tyres P.L.C. has selected Romania as the site for a greenfield passenger tire factory that it plans to build to replace capacity lost due to its decision to exit Russia.
The new factory, valued at close to $650 million, will be built in Oradea in northwestern Romania, near the Hungarian border, Nokian said Nov. 1.
The location will allow Nokian to bolster its market presence, particularly in central Europe.
The planned facility will be the "first zero CO2 emission factory in the tire industry," Nokian said.
Construction is scheduled to begin in early 2023 and the first tires are estimated to be produced in the second half of 2024, the tire maker said.
Large-scale tire production is slated to start in early 2025, Nokian said, noting that the plant will have an annual capacity of 6 million units with "expansion potential in the future."
The site will also include major facilities for storage and distribution of tires.