Nokian cuts back at Finnish tire plant

Helsinki – Nokian Tyres plc is cutting back production and staffing levels at its 76 kilotonne per annum tire factory in Nokia, Finland.

The move follows the completion of statutory negotiations with employees at the Finnish plant.

Workers and staff in car tire production, maintenance and quality departments at the facility are affected.

Adjustments to capacity utilisation as well as cost savings will be achieved mainly with temporary lay-offs and transfers to new positions, Nokian said.

Car tire production will be cut through temporary lay-offs by not more than 21 production days during 2014, and by a maximum of 38 production days in 2015.

The lay-off programme is, however, subject to market conditions, said Nokian, which has been impacted by a business downturn in its key Russian markets.

Reporting significant declines in first-half sales and earnings two months ago, Kim Gran, president and CEO, said: “Markets in Russia and CIS proved to be more challenging than estimated as a result of the Russia/Ukraine crisis escalating, devaluations and slow economies with a clear drop in sales value as a consequence.”

Overall, around 570 workers and staff are involved in the car tire production operation at Nokian Tyres’ factory.