Nokian Tyres inaugurates the world’s first zero CO2 emission tire factory: 650-million-euro investment in Oradea

Nokian Tyres inaugurated today its passenger car tire factory in Oradea, the world’s first zero CO2 emission tire factory in the world. The factory inauguration marks the successful completion of a 2-year long project and sets the ground for commercial production in early 2025.

“We are very pleased to be inaugurating our Oradea factory today. It will strengthen our capability to serve our customers in Central Europe and beyond and support our growth as planned toward net sales of EUR 2 billion. With our full-scale zero CO2 emission tire factory we are ready to lead the industry and set the new standard for sustainable tire manufacturing,” says Jukka Moisio, President and CEO of Nokian Tyres.

“The factory makes Nokian Tyres, once more, a pioneer of the tire industry. All electricity used at the Romania Oradea factory is CO2 emission free. Part of the electricity used in the factory is generated by on-site solar power units. Steam used to cure the tires is generated by innovative electric boilers which use fully CO2 emission free electricity instead of the usual fossil fuels such as coal or gas. In addition, the tire manufacturing process is very energy efficient as we are only utilizing the most modern technology and machinery. With our new Oradea factory, we are truly demonstrating our commitment to sustainability,” says Adrian Kaczmarczyk, SVP, Operation Excellence, Nokian Tyres.

The factory produced its first tire in July 2024, and the project is ramping up to the annual capacity of 6 million tires, with expansion potential in the future. The factory will focus on passenger car tire production to be primarily sold in the Central European market as it is strategically located close to that area’s customers.

The total factory area is some 54 hectares. The facility includes the production unit, a distribution facility for storage and distribution of tires, and mixing, utility and administrative buildings. The combined built-up area totals approximately 100,000 sqm.

Nokian Tyres chose Oradea in North-West of Romania as the location for the new tire factory as a result of a thorough evaluation, including more than 40 sites in various European countries. Among the criteria supporting the decision were talent, business environment, infrastructure, real estate and utilities, operational cost and risks.

“The work done in the last years is aimed at bringing us closer to our customers, creating a sound foundation for future sustainable growth. Oradea is now home to us, and we are committed to be a good neighbor, supporting the community, the regional economy and each member of our team,” says Susanna Tusa, General Director and Vice President of Nokian Tyres Romania.

The total value of the project is approximatively 650 million euro, which positions the Finnish company as one of the largest foreign investors in Romania in the recent years. To finance its sustainable tire manufacturing investment, Nokian Tyres will receive state aid from the Romanian government worth some 100 million Euro and an investment loan from European Investment Bank worth 150 million Euro.

Along with the construction work, Nokian Tyres conducted a recruitment campaign for attracting skilled employees, with a focus on local talents in Bihor County. The planned headcount of the Oradea factory is about 500 people. By the end of 2024, the number is expected to reach 300, and the process will continue in 2025.