Nokian Tires plcPrivileged information, November 1, 2022 at 11:30 a.m.
Nokian tires The board of directors took the decision to invest in a new passenger car tire factory in Romania. The new greenfield plant will be located in Oradea in the northwest of Romania, near the Hungarian border. The plant’s annual capacity will be 6 million tires with the potential for expansion in the future. The site will also house a distribution facility for the storage and distribution of tires. The total investment is estimated at approximately 650 million euros. Construction is expected to begin in early 2023 with the first tires expected to be produced in the second half of 2024. Commercial tire production is expected to begin in early 2025.
“This investment is an important strategic decision that enables our future growth. A world-class manufacturing facility in Europe is a key step in securing additional capacity and creating a balanced manufacturing platform as we begin to build the new Nokian tires without Russia,” said Jukka MoisioPresident and CEO of Nokian tires.
The planned workforce of the Romanian plant is approximately 500 employees. The plant will focus on the production of larger rim size passenger and SUV tires which will mainly be sold in the Central European market.
“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 more than 40 sites and several factors, such as the availability of skilled labor, logistical advantages and a stable business environment, it was clear that Oradea was the best choice for our new factory,” says Adrien KaczmarczykSVP, Supply Operations.
“We are committed to building a zero CO2 emissions factory – the first in our industry. The location of the site in Romania supports this goal because we can use the green energy produced near the site. Additionally, we critically evaluate production processes to find the most sustainable ways to produce tires,” Kaczmarczyk continues.
In June 2022, Nokian tires The Board of Directors has decided to initiate a controlled exit from Russia. Due to the war and the subsequent tightening of sanctions, it is no longer possible or sustainable for Nokian Tires plc continue operations in Russia. In October, Nokian tires signed an agreement to sell its Russian operations. To secure the supply of its products, Nokian tires decided earlier in the year to accelerate its investment plans in new production capacities by Europe, and the Romanian plant is a key part of these plans. In addition, Nokian tires continues to increase the capacity of its factories by Finland and the United States, aiming to become more geographically diverse in their manufacturing operations.
Further information : Jukka Moisio, Chairman and Chief Executive Officer, tel. +358 10 401 7742Adrien Kaczmarczyk, SVP, Supply Operations, tel. +49 151 6182 2476Paivi Antola, SVP, Communications, Investor Relations and Brand, tel. +358 10 401 7327
Investor Relations: [email protected]
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Nokian tires develops and manufactures premium tires for people who value safety, durability and predictability. Our goal is to enable the world to drive smarter. Inspired by our Scandinavian heritage, we design innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2021, the company’s net sales were €1.7 billion and it employed some 4,900 people. Nokian tires is listed on Nasdaq Helsinki. More information: www.nokiantyres.com
(c) Decision 2022. All rights reserved., sources Press Releases – English