Romania's economy is set to outpace its stagnating neighbours this year, helped by European Union funding, currency stability and foreign investment driven in part by reshoring from Russia and Ukraine. The International Monetary Fund expects a 3.1% expansion, while even the European Commission's 1.8% growth forecast would place it well ahead of Poland - seen growing 0.7% - and Hungary, grappling with a slowdown and sky-high inflation. That follows a decade in which Romania - long one of Europe's poorest countries, and burdened with a reputation for corruption - has quietly closed in on its peers to become eastern Europe's second-largest economy after Poland.
Finland's Nokian Tyres on Monday said it had found a subcontractor in China to replace some of the lost output from Nokian's now divested Russian operation. The move is part of Nokian's strategy to outsource some tire manufacturing to Asia while the company is ramping up its own production in Europe and the United States. "We have started to build the new Nokian Tyres without production in Russia, and contract manufacturing is an essential part of these plans," the company said in a statement.
HELSINKI (Reuters) -Shares of Finland's Nokian Tyres fell 12% on Tuesday on worries over future profitability after the company announced third-quarter earnings and plans to invest 650 million euros ($645.2 million) in a new passenger car tyre factory in Romania. Built to make six million tyres per year, the Romanian plant is set to replace some of the lost output from Nokian's now divested Russian operation which had the annual capacity to produce 17 million passenger car tyres. Nokian last week agreed to sell its Russian operations to local oil producer Tatneft PJSC for 400 million euros, a decision triggered by Moscow's invasion of Ukraine, although there was substantial uncertainty over the closing of the deal.