Nokia, Finland – Nokian Tyres is temporarily laying off all 1,630 employees in Finland in response to the Covid-19 crisis, the company announced 27 March.
The two-week shutdown, starting 6 April, affects both the personal car tire production as well as Nokian Heavy Tyres’ production.
In addition, due to the increased the uncertainty in the car and tire market, Nokian’s board of directors withdrew the company’s financial guidance for 2020 published in early February.
In its February outlook, the tire maker said it anticipated net sales to decline and operating profit to be “significantly below the level of 2019.”
The company board has not given a new guidance for 2020 due to the continued uncertainties.
Nokian is also temporarily ceasing operations at its factories in the US and Russia in response to the global spread of Covid-19.
The company closed its recently inaugurated US production site in Dayton, Ohio 27 March for at least two weeks. Nokian started commercial production at the plant, which manufactures passenger car and light truck tires, earlier this month.
In Vsevolozhsk, Russia, a production shutdown will start on 30 March and will last for a week. The Russian site rollls out15.5 million units per year of passenger car and light truck tires.
Nokian will continue supplying customers through its regional warehouses, according to the Finnish tire maker’s statement.