Finns from Nokian Tires will start construction of a tire plant in Oradea in May, the serial production of which should start in the second half of 2024. The total amount of investments will be 620 million euros. The state aid requested by Nokian for the implementation of the investment project is estimated at a nominal value of EUR 99 million.

In November 2022, Nokian announced that it would build a factory in Oradea. This decision is important for the economy of the region, as well as for Romania in particular, especially since our country has lost other major investments in cars, especially through infrastructure.

The plant in Oradea will employ 500 employees and will mainly produce tires for SUVs and other high-end vehicles, with the main target markets being Central Europe. The Finns say they analyzed 40 sites before choosing Oradea.

The first tires, as part of test production, will roll off the assembly lines in the second half of 2024. The investment will also include a logistics center for tire distribution.

The net salary will be more than 5,800 lei, which is almost twice the average salary in the region.

According to the government, the state aid requested by Nokian for the implementation of the investment project is estimated at a nominal value of EUR 99.55 million (gross value).

State aid will be provided in the form of a grant only after the European Commission issues a decision on its approval, and the period of state aid payment will be 2023-2028, the document says.

The investment project must be supported for a period of at least 5 years.

The Nokian had plenty of seats to choose from. Among the 40 targets for transferring production to Russia, “it was clear that Oradea was the best choice”

“It was clear that Oradea was the best choice for our new factory,” Nokian’s head of investor relations Pjavi Antola told Reuters, who said Nokian had a choice of 40 relocation targets, taking into account labor availability, logistical advantages, ecological energy. springs and rail access.

Nokian has 4,900 employees and manufactures in Finland and the United States. In the Scandinavian country, the factory is located in a city called…Nokia. The company was founded in 1988.

Nokian Tires is registered in Helsinki and has a market capitalization of EUR 1.6 billion. In July 2021, the capitalization was 5.6 billion dollars, and the historical maximum was reached in October 2013: 6.8 billion dollars.

Photo source: Dreamstime.com