The European Investment Bank (EIB) granted Nokian Tyres a loan of 150 million euros for the construction in Romania of the first factory that will produce car tires without carbon dioxide (CO2) emissions, the international financial institution announced.
“The financing of the Finnish company is aimed at building a state-of-the-art factory in northwestern Romania, in Oradea. This support reaffirms the EIB’s commitment to climate actions, as well as to regional development and social cohesion in the European Union,” the release states.
The factory in Oradea, expected to be completed in 2027, will create approximately 500 full-time jobs and will help combat the demographic decline in the region, the quoted source states.
“Our collaboration with Nokian Tyres will significantly contribute to the development of the northwestern area of Romania. It will also make the region more attractive for other possible investors,” said EIB Vice President Ioannis Tsakiris.
The factory will be approximately 100,000 square meters and will rely on green energy obtained from sources with zero CO2 emissions, including locally produced green energy, as well as advanced technologies to prevent CO2 emissions.
The plant will produce up to 6 million tires annually once it reaches full capacity in 2027. Commercial operations will begin in the first part of 2025 and capacity will be gradually increased in 2026. The site will also include a warehouse for tire distribution.
“Our factory in Romania will be a landmark in the profile industry and will have a holistic approach to sustainability, which will include the use of only CO2-free energy sources and highly automated, energy-efficient processes. The EIB is an important partner in our investment project, and the financing agreement allows us to further develop the sustainability of the tire industry,” said Leena Kaipainen, Vice President and Treasurer of the Nokian Tyres Group.
According to the press release, the loan agreement aligns with the EIB’s objectives regarding climate action and environmental sustainability, and adheres to the principles of the Paris Agreement. In addition to climate actions, this project also targets several sustainable development goals, including decent working conditions and economic growth, industry, innovation and infrastructure, responsible consumption and production, and climate policies.
Nokian Tyres develops and produces premium tires and in 2023 reported net sales totaling 1.17 billion euros. At the end of 2023, the company had over 3,400 employees. Nokian Tyres is listed on the Nasdaq Helsinki stock exchange.