January 19 (SeeNews) - Romania's government said it will grant Finland's Nokian Tyres 99.55 million euro ($108.1 million) in state aid for the construction of a tyre factory in the northwestern city of Oradea.
The decision to provide state aid to the Finnish tyre manufacturer is pending authorisation from the European Commission, the government said in a statement on Wednesday.
The state aid will finance costs related to setting up the tyre plant and is to be disbursed over a period of five years, between 2023 and 2027. The total nominal value of the investment amounts to 642.4 million euro, of which 611 million euro constitute eligible costs. The new production unit has a planned capacity of six million tyres per year and will feature technical solutions that enable a high level of automation.
In November, Nokian Tyres announced a greenfield investment project worth some 650 million euro, to build a passenger car tyre factory in Romania, as part of its plans to secure the supply of its products after exiting Russia in October. Its Romanian arm was founded on November 11, 2022, according to data from Romania's finance ministry.
Founded in 1988, Nokian Tyres produces tyres for cars, trucks, buses, and heavy-duty equipment. The company currently operates factories in Finland and the U.S.
($=0.921 euro)