Nokian in talks to reduce production of 'heavy tires'

Nokia, Finland - Nokian Heavy Tyres Ltd has started negotiations with staff to “adapt production” to changes in demand within the tire market.

Described by the Finnish tire maker as 'change negotiations', the talks concern factory employees of Nokian Heavy Tyres and affects 160. 

The possible adjustment measures could be layoffs of employees and shortening of their daily and weekly working time, said a 2 May Nokian statement.

Planned for 2023, the temporary “productional and financial” measures would be for a maximum period of 90 days per employee.

Nokian said it expects the negotiations to last for two weeks - without providing further details about market situation that prompted this move.

In 2019, Nokian launched a €70-million project to raise the production capacity of heavy tires at its Nokia factory from 20 to 32 million kilos per annum by 2023.

At the time, global demand for 'heavy tires' was steadily growing, with rates estimated above 4% per year.

More recently, though, demand for off-road tires, particularly in the agricultural tire segment, has been in reverse.

In Europe, replacement farm tire demand fell 39% year-on-year drop in the first quarter, following on from a 22% annual decline in 2022.