Nokian to ‘adjust’ output at Finnish plant

Nokian Tyres intends to implement a series of measures at its passenger car tyre factory in Nokia, Finland to “adjust the production to meet the market situation.” It will begin statutory negotiations with this goal in mind on 25 September. Nokian says its negotiating aim is to adjust how production capacity is utilised and to create cost savings.

Subjects on the negotiations agenda include plans for production downtime, possible changes in shift manning, and productivity improvement measures. The tyre maker mainly intends to achieve these changes through temporary worker layoffs in late 2014 and 2015. Nokian tyres says approximately 570 workers and staff in the production, maintenance and quality departments at its Nokia plant are affected by the measures that will be negotiated. It adds that a maximum of nine jobs may also be axed.

The company downgraded its financial outlook for 2014 in April, a revision made due to the weakened economic outlook in Russia and CIS countries and to accommodate a downward revision in estimated car and tyre sales in these areas. Nokian Tyres continues to estimate sales growth in its western markets in 2014.