FINLAND: Russia/CIS decline spurs Nokian Tyres cutbacks
Nokian Tyres, which specialises in tyres for northern winter conditions, is planning production cuts and temporary layoffs.
It said it would begin statutory negotiations on 25 September at its Nokia car tyre production plant "to adjust the production to meet the market situation".
"With the negotiations the company aims to adjust the utilisation of the production capacity and create cost savings," it said in a statement.
On the talks agenda are planned production downtime, possible changes in shift manning and productivity improvement measures.
The company hopes to achieve this mostly with temporary layoffs in the final months of 2014 and during 2015. The negotiations cover 570 workers and staff in production, maintenance and quality but the company hopes to axe no more than nine jobs.
Nokian Tyres last April downgraded its financial outlook for 2014, due to the weakened economic outlook in Russia and CIS countries, and said estimates for car and car tyre sales had since continued to decline.
The company continues to estimate sales growth in its western markets in 2014.