EIB Lends €150 Million for World's First Carbon-Free Tyre Plant in Romania

Advanced technologies will be employed to ensure that CO2 emissions are entirely eliminated, aligning with global efforts to combat climate change.

The European Investment Bank (EIB) has committed €150 million in financing to Nokian Tyres for the construction of the world's first carbon dioxide (CO2)-free passenger car tyre plant, set to rise in Oradea, northwestern Romania. This groundbreaking initiative highlights the EIB's dedication to climate action, regional development, and social cohesion within the European Union.

The new factory, scheduled for completion in 2027, will span approximately 100,000 square meters and will be powered exclusively by zero CO2 energy sources, including locally generated green power. Advanced technologies will be employed to ensure that CO2 emissions are entirely eliminated, aligning with global efforts to combat climate change.

Once operational, the facility will have the capacity to produce up to 6 million tyres annually. It is expected to commence commercial operations in early 2025, gradually increasing production throughout 2026. The site will also feature a storage facility to streamline tyre distribution.

The Oradea plant is a pivotal element of Nokian Tyres' global strategy to set new standards in sustainability, integrating energy-efficient processes and automated technologies. Leena Kaipainen, Vice President and Group Treasurer of Nokian Tyres, emphasized the project's role as an industry benchmark for holistic sustainability and thanked the EIB for its crucial support.

EIB Vice-President Ioannis Tsakiris noted that the project will significantly contribute to the development of northwestern Romania, creating around 500 full-time jobs and helping mitigate local demographic decline. He also highlighted the plant's potential to enhance the region's appeal to other investors.

The financing agreement aligns with the EIB's Climate Action and Environmental Sustainability objectives and supports several Sustainable Development Goals (SDGs): SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). This investment underscores the EIB's commitment to fostering sustainable development and advancing global climate goals as outlined in the Paris Agreement.