BUCHAREST, Romania—The Romanian government has agreed to provide Nokian Tyres P.L.C. grants valued at $108 million to support Nokian's recently inaugurated tire plant in Oradea, in northwest Romania.
The state aid is being provided to Nokian following the authorization of the European Commission earlier in August and will be available until Sept. 1, 2027, the Romanian government announced Nov. 7.
Nokian commissioned production at the $720 million "zero-emission" greenfield plant in Oradea in September with the aim of serving Central European markets predominantly.
The plant has a nameplate capacity of 6 million tires a year.
The Oradea factory is part of the Finnish tire maker's "new Nokian" vision after its exit from Russia in 2023, which envisages annual sales revenue of $2.2 billion in the near future.
The grant from Romania is in addition to a $165 million loan Nokian received from the European Investment Bank (EIB) for the construction of the zero-carbon factory. The EIB said its support highlights the bank's "commitment to climate action as well as to regional development and social cohesion in the European Union."
