A ground-breaking ceremony has been held at Nokian Tyres’ upcoming, zero CO2 emission factory in Oradea, Romania. The total investment for the site is estimated to be approximately €650m (US$709.5m). Upon completion, the facility will have an annual capacity of six million tires with the potential to increase this number if required.

The factory will produce mainly larger rim size passenger and SUV tires that will mostly be sold in Central Europe. In addition to a production area, the facility will house distribution and storage areas. The site is expected to cover approximately 100,000m2.

“This investment is a significant strategic step enabling our future growth and development. A world-class manufacturing facility in Europe is a key step in getting additional capacity and creating a balanced manufacturing platform as we build the new Nokian Tyres,” said Jukka Moisio, president and CEO of Nokian Tyres.

“We are very proud to build the first zero CO2 emission factory in the tire industry. This means, for instance, that energy used at the factory comes from renewable sources, and steam needed for the tire manufacturing process is generated fully without fossil fuels. The site location in Romania supports the target as we can utilize green energy produced near the site. We are committed to building a sustainable and competitive tire production facility.”

The factory is being built in an important strategic location close to many European transportation routes and will initially house around 500 staff when commercial production begins.

“Central Europe is an important market for us, and the investment shows our commitment to the market,” said Adrian Kaczmarczyk, SVP of supply operations at Nokian. “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 is awaiting a final decision from the EU regarding its funding application for approximately €100m (US$109.2m). The application has already been approved by the Romanian government.

Reference: Tire Technology