European Commission approves 99.5 million Euro state aid measure for the Nokian Tyres’ tire factory in Romania

The European Commission has approved, under EU State aid rules, a €99.5 million (RON 495.2 million) Romanian measure in favour of Nokian Tyres. The aid will support the establishment of a new zero carbon dioxide emission factory for passenger car tyres in Oradea.

Under the measure, the aid will take the form of a direct grant. The aid amount will be around €99.5 million (RON 495.2 million). The investment is estimated to total approximately €650 million.

The plant is expected to have a capacity of approximately 6 million units per year. The project will create approximately 500 direct jobs, as well as further indirect jobs. The project is also expected to bring sustainability benefits by aiming to be the world’s first zero carbon dioxide emission tire factory.

The construction of the factory, which will be the first zero CO2 tire factory in the world, started in May 2023. Once completed the factory will produce approximately 6 million tires per year with an expansion potential in the future. The first tire was produced on 1 July 2024, and commercial production will start early 2025.