Nokian will cut back tire production in Finland as its new Russian plant begins production
Nokian is scheduled to begin production at its new factory in Vsevolozhsk, Russia in June 2012. The factory is built alonside an existing plant. Two new production lines are scheduled to begin this year, with two more to begin production in 2013 and 2014. At that time, the plant’s annual capacity will be six million tires and the two Russian factories will have a combined annual capacity of approximately 17 million tires.
As production increases in Russia, Nokian is reducing work at its home factories. Starting in July, production at the tiremaker’s plant in Nokia will be cut back to a five day per week schedule. According to the company, the plant will continue to produce primarily for the Nordic countries. The 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.