The European Commission announced on Tuesday that it approved, under the EU rules on state aid, an aid measure worth 99.5 million euros (495.2 million lei) notified by Romania in favor of Nokian Tyres, it is stated in the a communique of the Community Executive.
The aid will support the establishment in Oradea of the first local factory with zero carbon dioxide emissions intended for the production of car tires. The measure will contribute to the EU’s strategic objectives related to job creation, regional development and the green transition of the regional economy, according to Agerpres.
Romania has notified the Commission of its plan to support Nokian Tyres to set up a new zero-carbon tire factory in Oradea, Bihor County (North-West region). Under the measure, the aid will be granted in the form of a direct grant. The aid will have a value of approximately 99.5 million euros (495.2 million lei). The investment is estimated at approximately 650 million euros.
It is expected that the factory will have a production capacity of approximately 6 million units per year. The project will create around 500 direct jobs, as well as other indirect jobs. The project is also expected to bring benefits in terms of sustainability, as it aims to establish the world’s first zero-carbon tire factory. The factory will be located in Oradea, an area eligible for regional aid under Article 107(3)(a) of the Treaty on the Functioning of the EU (“TFEU”).
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(a) of the TFEU, which allows Member States to promote the economic development of the most disadvantaged areas of the EU, as well as under the Guidelines regarding regional state aid from 2021.
According to the press release, the Commission found that the measure will contribute to job creation, economic development and the competitiveness of a disadvantaged area. Also, the aid has a stimulating effect, because the beneficiary would not have carried out the project in the absence of public support, the measure has a limited impact on competition and commercial exchanges within the EU.
In particular, the measure is necessary and appropriate for the establishment of the new Nokian Tyres factory, contributing at the same time to regional development, and the aid is proportional and limited to the minimum necessary to attract investment in Oradea, the community forum claims. It will not exceed the maximum allowed amount of aid for the project, calculated on the basis of Romania’s regional aid map.