THE EUROPEAN COMMISSION HAS APPROVED STATE AID MEASURE TO SUPPORT NOKIAN TYRES’ NEW ZERO CO2 EMISSIONS TIRE FACTORY IN ROMANIA

The European Commission has approved, under EU State aid rules, a EUR 99.5 million (RON 495.2 million) Romanian measure in favour of Nokian Tyres. The aid will support the establishment of Nokian Tyres’ new zero CO2 tire factory in Oradea, Romania.

The Commission found that:

• The measure will contribute to job creation, the economic development and the competitiveness of a disadvantaged area. In particular, the measure will have a positive impact on employment, creating approximately 500 direct jobs, as well as further indirect jobs.
• The aid has an incentive effect, as the beneficiary would not have carried out the project without the public support.
• The measure has a limited impact on competition and trade within the EU. In particular, it is necessary and appropriate to set up the new factory of Nokian Tyres, while contributing to the regional development.
• The aid is proportionate and limited to the minimum necessary to trigger the investment in Oradea. It will not exceed the maximum allowed aid amount for the project calculated based on the Romanian regional aid map.

On this basis, the Commission approved the Romanian measure under EU State aid rules.

Nokian Tyres total investment in the Romanian factory is worth EUR 650 million. 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.