Why Romania will be home to the world’s first zero-emissions tyre factory

As Romania continues to embrace innovative technologies and sustainable practices, it is positioning itself as a critical player in the global automotive industry.

Romania’s burgeoning reputation as a gold standard player in the global manufacturing sector, particularly within the automotive industry, continues to grow.

With its strategic location in South East Europe, skilled workforce, and high levels of value-added, Romania has become an attractive hub for automotive giants looking to expand their production capabilities. The country not only builds cars—Dacia and Ford together assembled more than half a million cars in Romania in 2023—but has also attracted leading suppliers such as Bosch, Continental, and Daimler.

According to KPMG, the automotive sector accounted for around 13 per cent of Romania’s GDP in 2023.

Last month, BMW announced that its BMW TechWorks Romania, which it is developing in cooperation with Japan’s NTT DATA, will become the hub for its European IT and software projects and will accelerate the company’s digital transformation. 

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This momentum was further bolstered this week by the announcement that a tyre factory currently under construction in Oradea, in the west of Romania close to the Hungarian border and Central European markets, would be the first zero-emissions tyre plant in the world, setting a new standard for sustainable manufacturing not just in the emerging Europe region, but globally.

Finland’s Nokian Tyres began construction of the Oradea plant in 2023, having exited Russia following Moscow’s invasion of Ukraine and the implementation of crippling sanctions.

Commercial operations will begin in early 2025 and ramp up capacity in 2026. The facility will produce up to six million tyres annually once full capacity is reached in 2027. The site will also include a storage facility for tyre distribution.

‘Industry benchmark’

“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,” says Nokian Tyres Vice President Leena Kaipainen.

Around a third of the estimated 650 million euros being invested in the tyre plant is coming from the European Investment Bank (EIB), which this week announced that it is lending Nokian 150 million euros—an investment not just in the tyre plant, but in the Oradea region.

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

The factory in Oradea will employ some 500 people 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.

Taking the lead in sustainable manufacturing

Nokian says that the project is central to its global strategy to develop innovative, reliable and sustainable tyres.

That Romanian know-how and talent will be central to that effort is further proof of the country’s remarkable rise to manufacturing prominence.

Indeed, Romania’s place on the automotive manufacturing landscape is no longer an emerging trend but a firmly established reality. The opening of the zero-emissions tyre plant in Oradea is a clear indicator of the country’s potential to lead in sustainable manufacturing.

As Romania continues to embrace innovative technologies and sustainable practices, it positions itself as a critical player in the global automotive industry, paving the way for a greener and more prosperous future.

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