ORADEA, Romania—Nokian Tyres P.L.C. broke ground May 11 on the firm's passenger tire factory in Oradea with Romanian Prime Minister Nicolae Ciucă and other high-level Romanian and Finnish officials in attendance.
The new factory, which is designed to take the place of the factory in Russia that Nokian has divested in the wake of Russia's invasion of and ongoing war with Ukraine, is slated to begin commercial-scale production in 2025.
Nokian has budgeted nearly $700 million for the factory, which will be rated at 6 million tires a year initially, with expansion possibilities longer term. The Romanian government has approved additional funding of over $100 million, for which Nokian Tyres said it is awaiting a final decision from the European Union.
"This investment is a significant strategic step enabling our future growth and development, Nokian Tyres President and CEO Jukka Moisio said.
"A world-class manufacturing facility in Europe is a key step in getting additional capacity and creating a balanced manufacturing platform as we build the new Nokian Tyres.
Moisio noted that plant will the first zero-CO2 emission factory in the tire industry, using energy from renewable sources located nearby and steam generated fully without fossil fuels.