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The European Commission has approved state aid for a zero-CO2 emission tire factory in Romania

by AI | 14.Aug 2024 | Europe in brief AI

The European Commission approves a state aid measure worth 99.5 million euros notified by Romania to support the new CO2 zero-emission tire factory, which will be the first of its kind in the world.

Inauguration of works at the Nokian Tyres factory

Brussels – The European Commission has approved, under the EU’s state aid rules, a state aid measure amounting to EUR 99.5 million (RON 495.2 million) notified by Romania for the establishment of a new zero carbon dioxide emission factory intended for the production of car tires. The measure will contribute to the EU’s strategic objectives related to job creation, regional development, and the green transition of the regional economy.

Romania notified the Commission of its plan to support Nokian Tyres in establishing a new zero carbon dioxide emission tire factory in Oradea, Bihor county (North-West region), an area eligible for regional aid under the EU’s Treaty on the Functioning of the EU. Under the measure, aid will be granted in the form of a direct grant. The investment is estimated at approximately EUR 650 million.

The project will bring sustainability benefits as it aims to establish the world’s first zero carbon dioxide emission tire factory.

“The project is expected to set a world first and contribute to competitiveness and the green transition in this area,” said Margrethe Vestager, EC Vice-President responsible for competition policy, quoted in a press release from the European Commission.

The factory is expected to have a production capacity of around 6 million units per year. The project will create around 500 direct jobs as well as additional indirect jobs.

Regional state aids aim to support the economic development of disadvantaged areas of Europe while ensuring fair competition conditions among member states, the statement said. (13.08.2024)