The Nokian Tyres P. L. C. plant in Vsevolozhsk, Russia, which the Finnish tire manufacturer has agreed to sell to Tatneft for its full exit from Russia. Nokia has selected Romania to host a new $650 million European tire plant.
NOKIA, Finland—Nokian Tyres has P. L. C. se decided on Romania to host a new passenger tire plant it plans to build to upgrade capacity lost due to its decision to leave Russia.
The new plant, valued at about $650 million, will be built in Oradea in northwestern Romania near the Hungarian border, Nokia announced Nov. 1.
This location will allow Nokia to have a presence in the market, specifically in Central Europe.
The facility will be the “first zero-CO2 plant in the tire industry,” Nokia said.
Construction is expected to begin in early 2023 and the first tires are expected to be produced in the current part of 2024, the tire maker said.
Large-scale tire production is expected to begin in early 2025, Nokia said, noting that the plant will have an annual capacity of 6 million sets with “potential for expansion in the future. “
They will also come with an extensive tire garage and distribution facility.
“This investment is a strategic resolution for our long-term growth,” said Jukka Moisio, President and Chief Executive Officer.
“A world-class production facility in Europe is a key milestone. . . while we started building the new Nokian tires without Russia,” he added.
The plant is expected to employ another 500 people and will be dedicated to the production of longer passenger tires and SUVs that will be sold primarily in the Central European market.
“Central Europe is a market for us, and the investment shows our commitment to the market,” said Adrian Kaczmarczyk, senior vice president of acquisitions operations.
Nokian said it chose the after a thorough assessment of more than 40s and several factors, such as the availability of a professional workforce, logistical benefits and a strong business environment.
“It is clear that Oradea is the most productive selection for our new plant,” Kaczmarczyk added.
As for the plant’s 0 CO2 emissions, Kaczmarczyk said the location can use green energy produced near the site.
In addition, Nokia is “critically evaluating” its production processes for “maximum sustainable tactics for producing tires,” Kaczmarczyk added.
Nokia announced in June that it would leave Russia because of the war against Ukraine and the consequent tightening of sanctions against Moscow.
In October, the Finnish tire manufacturer signed an agreement to sell its Russian operations to customer Tatneft.
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