Romania gets EIB support for world’s first zero-emissions tyre factory with loan to Nokian Tyres

• Romania receives EIB backing to become home to the world's first tyre-production plant with no carbon-dioxide emissions.
• EIB lends Nokian Tyres €150 million to build green factory in northwestern Romanian city of Oradea.
• Manufacturing site to begin operations in early 2025 and reach full capacity in 2027.

The European Investment Bank (EIB) is lending Nokian Tyres €150 million for the construction in Romania of the world's first plant for producing passenger car tyres without emitting carbon dioxide (CO2). The credit to Finland-based Nokian Tyres is for a state-of-the-art factory in the northwestern Romanian city of Oradea.

The support highlights the EIB's commitment to climate action as well as to regional development and social cohesion in the European Union. The Oradea factory, due to be completed in 2027, will lead to around 500 full-time jobs and help counter a demographic decline in the area.

"Our collaboration with Nokian Tyres will have a significant contribution to the development of northwestern Romania," said EIB Vice-President Ioannis Tsakiris. "It will also improve the region's attractiveness for other potential investors."

The factory in Oradea will be around 100,000 square metres and rely on energy from zero CO2 sources, including locally produced green power, as well as on advanced technologies to prevent CO2 emissions, which cause climate change.

The facility will produce up to 6 million tyres annually once full capacity is reached in 2027. It will start commercial operations early 2025 and ramp up capacity in 2026. The site will include a storage facility for tyre distribution.

The project is central to Nokian Tyres' global strategy to develop innovative, reliable and sustainable tyres.

"Our Romania factory will be an industry benchmark with a holistic approach to sustainability, including the use of solely CO2-free energy sources and energy-efficient and highly automated processes," said Nokian Tyres Vice President and Group Treasurer Leena Kaipainen. "The EIB is an important partner in our investment project and the financing agreement allows us to further develop sustainability of the tyre industry."

The loan agreement is fully aligned with the EIB's Climate Action and Environmental Sustainability objectives and adheres to the principles set out in the Paris Agreement. Beyond climate action, this project addresses several Sustainable Development Goals including SDG 8: Decent Work and Economic Growth, SDG 9: Industry, Innovation, and Infrastructure, SDG 12: Responsible Consumption and Production, and SDG 13: Climate Action.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group's annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment.

Last year, around half of the EIB's financing within the European Union was directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.

Nokian Tyres

Nokian Tyres develops and manufactures premium tyres for people who value safety, sustainability and predictability. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tyre and car services. In 2023, our net sales totalled €1,174 million. At the end of 2023 we employed over 3,400 professionals. Nokian Tyres is listed on Nasdaq Helsinki.

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