Romania's Prime Minister Nicolae Ciuca has welcomed he decision announced by the Nokian Tyres PLC Company to invest 650 million euros in Romania, told Agerpres.
He wrote on Facebook on Tuesday that the first zero CO2 emission tyre factory to be built in Oradea will annually produce six million tyres and generate approximately 500 jobs.
"The final decision was taken after a thorough evaluation of over 40 locations and several factors, such as skilled workforce availability, logistical advantages and stable business environment. I am glad that I had the opportunity to present, during a recent meeting with the company's execs at the Government House the opportunities that the government of Romania can generate for foreign investors, including for those looking to relocate businesses from the region."
Ciuca added that the government is open to investment, both through an unprecedented national budget allocated in this regard, and by supporting and encouraging decisions to develop new businesses in Romania.
Nokian Tyres' Board of Directors has made a decision to invest EUR 650 million in a new passenger car tyre factory in Romania, the first zero CO2 emission factory in its industry. The new greenfield factory will be located in Oradea in the North-West of Romania, near the Hungarian border.
The annual capacity of the factory will be 6 million tyres with an expansion potential in the future. The site will also house a distribution facility for storage and distribution of tyres.
The planned headcount of the Romanian factory is about 500 employees, with the factory focusing on the production of larger rim size passenger and SUV tyres that will be primarily sold in the Central European market.
The Finnish manufacturer was looking for a new location for a production facility after making the decision to withdraw from Russia in response to the latter's invasion of Ukraine.
On September 14, Ciuca had a meeting with a Nokian Tyres delegation, with discussions focusing on the state aid packages available for large investment projects and openness to the needs of relocating industrial production capacities as a result of the Russian military aggression against Ukraine.
In 2021, the company's turnover was approximately EUR 1.7 billion and it employed some 4,900 people. Nokian Tyres is listed on Nasdaq Helsinki.