Nokian to cut production at HQ plant

ERJ staff report (TB)

Nokia, Finland -- Nokian Tyres PLC is planning to cut production at its headquarters' plant in Nokia temporarily, resulting in the probable layoff of the plant's 1000 employees for about three weeks starting in mid-December.

Nokian said the production adjustments reflect the global financial crisis. In addition, Nokian is upgrading technology for car and van tyre production at the plant, which eventually could lead to the elimination of about 70 jobs.

The layoffs are scheduled to begin Dec. 21 and last until Jan. 11.

Additionally, Nokian said it might have to lay off 100 employees in its heavy tyres area for seven to eight months, starting in January. Already Nokian has switched production from forestry tyres to harbor, mining, agricultural and industrial machinery tyres in the face of low demand for forestry tyres.

Nokian employs 1000 at the 104-year-old headquarters plant, where it makes passenger, light truck, farm, earthmover and industrial tyres.

Nokian said it will start negotiations related to these matters with the appropriate employee representatives, according to Finnish law.

The cutbacks reflect statements made in the firm's third quarter financial report: “In Russia and the CIS countries, the economy and new car sales growth have slowed down considerably. In the Nordic countries, demand is expected to remain at last year's level. The winter tire stocks of Central European tire distributors are exceptionally high, and manufacture in the automobile and tire industry has been restricted from the summer onwards. The manufacture of industrial machinery and equipment is expected to continue to decrease.”

From Tire Business (A Crain publication)