Nokian Tyres plc will build a new tire factory in Romania in response to exiting and selling its operations in Russia. The tire company is looking to replace the Russian plant that as recently as 2021 had produced 80% of its passenger tires.
The plant in Oradea, Romania will have an annual capacity of six million tires, with the potential to expand. The first test tires are expected to roll off the assembly line in the second half of 2024, with production for the market to begin in 2025. The site will also include a distribution center.
Nokian says the plant will be the first tire plant to have zero carbon dioxide emissions.
Jukka Moisio, president and CEO, said, “In the third quarter of 2022, our focus was on planning and taking the first steps to build the new Nokian Tyres without Russia.”
The company will invest 650 million euros in the facility in Romania. The plant will employ around 500 people and production will focus on larger wheel diameter passenger and SUV tires to be sold primarily in Central Europe.
“The investment is a vital element in getting additional capacity and enabling our future growth, and we expect the commercial production to start in 2025. At the same time, we have continued to increase capacity at our factories in Finland and in the U.S."
Moisio says, “This investment is a significant strategic decision enabling our future growth. A world-class manufacturing facility in Europe is a key step in getting additional capacity and creating a balanced manufacturing platform as we start building the new Nokian Tyres without Russia."
Adrian Kaczmarczyk, senior vice president of supply operations, says “Central Europe is an important market for us, and the investment shows our commitment to the market. The new site will be strategically located close to our customers. After a thorough evaluation of over 40 locations and several factors, such as skilled workforce availability, logistical advantages and stable business environment, it was clear that Oradea was the best choice for our new factory."
Nokian previously announced it had entered into an agreement with Tatneft PJSC to sell its Russian operations for 400 million euros. Once that deal closes, it will mark the end of all of Nokian’s operations in Russia.
