World’s First full-scale Zero CO2 Emission Tire Factory

Nokian Tyres inaugurated its passenger car tire factory in Oradea, Romania, on September 19^th. The factory operates without utilizing any fossil energy, making it the world’s first full-scale tire factory with zero CO2 emissions. The factory inauguration marks the successful completion of a 2-year long project and sets the ground for commercial production in early 2025.

The Oradea Factory Grand Opening was held in the presence of high-level Romanian government and local authorities; Ambassadors of Finland and Romania; together with Nokian Tyres’ Board of Directors, Management Team and some 200 guests.

“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,” said Jukka Moisio, President and CEO of Nokian Tyres.

“The entire construction process was highly efficient, and I would like to thank everyone who made this achievement possible,” he added.

 

Only zero CO2 emission energy

At the Nokian Tyres Oradea factory, no energy generated by fossil fuels is used. This enables the whole factory to operate with zero CO2 emissions. This is achieved through a combination of solutions.

“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,” Adrian Kaczmarczyk, SVP, Operation Excellence, Nokian Tyres, noted.

 

6 million tires per year

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 m2.

 

Committed to Oradea with the largest foreign investment in Romania in the recent years

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,” mentioned Susanna Tusa, General Director and Vice President of Nokian Tyres Romania.

The total value of the project is approximatively EUR 650 million, 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 EUR 100 million and an investment loan from European Investment Bank worth EUR 150 million.

 

A team of over 500 professionals

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.

Nokian Tyres’ purpose is to make the world safer by reinventing tires, and how they are made, over and over again – a safer place to drive, work and live now and for generations to come. Inspired by our northern heritage, we develop and manufacture premium tires for passenger cars, trucks and heavy machinery with sustainability at the heart of all our operations. Our Vianor chain provides tire and car services. We are some 3,400 people with net sales of EUR 1.2 billion in 2023, and together we lead the journey to smarter driving for people and for businesses. Nokian Tyres is listed on Nasdaq Helsinki.