Nokian to reduce Finnish workforce as Russian plant goes on-stream

Production at Nokian’s new factory in Vsevolozhsk, built alongside the company’s existing plant, will begin in June 2012. Two production lines are scheduled to enter service this year and a further two are to begin production in 2013 and 2014. At this time, the plant’s annual capacity will be six million tyres and the two Russian factories will have a combined annual capacity of approximately 17 million tyres.

Some, however, may view Russia’s gain as Finland’s loss. Starting in July, production at the tyre maker’s plant in Nokia – which will “continue to produce tyres mainly for the needs of the Nordic countries” – will be cut back to a five day a week schedule. This modified production plan will lead to a cut in outsourced labour and the elimination of around 120 jobs. Nokian says a 30 million euro modernisation plan being carried out in the Nokia factory will enable it to operate with a lower workforce.

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• Nokian to build second plant in Russia