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Nokian Tyres to start new statutory negotiations to adjust operations at the Nokia car tyre factory

Tue December 9 02:50 pm 2008 in category Stock exchange releases
Nokian Tyres plc
Stock Exchange Release

NOKIAN TYRES TO START NEW STATUTORY NEGOTIATIONS TO ADJUST OPERATIONS AT THE NOKIA CAR TYRE FACTORY

Nokian Tyres has today started new statutory negotiations
in order to adjust operations and to cut personnel by approx. 450 people at its Nokia factory in Finland due to the decreased demand for tyres.

The agenda of the negotiations includes a plan to change the working model of the car tyre production from the current continuous three-shift/seven days work to the discontinued three-shift/five days operations and to re-organize operations. This would result in the annual production capacity at the Nokia factory to decrease from the current approx. 6 million tyres to approx. 4.5 million tyres in 2009.

The discontinued three-shift work and the re-organisation measures would create a need to cut personnel by approx. 450 people of which some 100 people would be white collar personnel. The aim is to carry out part of the personnel cuts by pension arrangements and other voluntary solutions.

The new factory working model and re-organisations would decrease Nokian Tyres’ costs in Nokia by approx. 30 million euros.

- The Nokia factory will concentrate in producing tyres needed in the Nordic and other Western countries, whereas production at the Russian factory will be sold in Russia and other CIS countries and also partly exported to other markets. We are able to increase our production rapidly in both factories once the tyre market recovers, says Mr. Kim Gran, CEO and President of Nokian Tyres.

The statutory negotiations of Nokian Heavy Tyres are continuing.

Nokian Tyres plc

Raila Hietala-Hellman
Vice President, Corporate Communications


Further information: Mr. Kim Gran, President and CEO,
tel. +358 10 401 7336.


Distribution: NASDAQ OMX, major media and www.nokiantyres.com