Nokian to scale back heavy tyre output
Following a drop in demand for Nokian heavy tyres and the expectation that lower demand will continue into 2012, the Finnish manufacturer has opted to reduce its production output of these products. On 25 November Nokian shared details of a preliminary plan to change the working pattern of its heavy tyre production to a discontinued five-day, three-shift model and to reduce the work input of approximately 100 factory and 15 white-collar employees through lay-offs. The company says that personnel cuts are also a possibility.
These changes in production are expected to begin in January-February 2012 and will continue until further notice. Nokian says related statutory negotiations will apply to the entire staff of Nokian Heavy Tyres – approximately 260 employees – and be handled according to Finnish law.
Along with announcing these measures, Nokian confirmed that orders for its passenger car tyres are “strong with no signs of weakening.” The company also said it retains its 4 November financial guidance, namely that it is positioned to provide strong sales growth and to improve operating profit significantly compared to 2010.
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