Nokian confirms temporary lay-offs at Heavy Tyres unit

Nokia, Finland – Nokian Heavy Tyres Ltd has resolved to carry out a previously signalled “temporary lay-off” policy in response to decreased demand.

In a statement 15 May, Nokian said that following negotiations with staff, "all Nokia factory employees” of its Heavy Tyres business can be temporarily laid off.

Expected to impact 160 workers, the layoffs will be for a maximum of 90 days per person and be carried out during 2023.

Nokian said the measure was taken for “productional and financial reasons” with the aim to adapt manufacturing to changes in the market and demand situation.

In February, Nokian reported a record year for its Heavy Tyres unit in 2022, including “best-ever net sales and profitability, supported by the highest ever productivity.”  

Posting a 7.7% year-on-year increase in 2022 sales of 'heavy tires', to €273.5 million, Nokian noted “attractive opportunities to continue on a strong growth track as well as further improving profitability."”

However, in its forecasts for 2023, Nokian also cautioned that “the general economic development may have a negative impact on demand,” for 'heavy tires’.

Nokian produces all of its ‘heavy tires’ in Finland and discontinued sales and distribution of these products to Russia in the first quarter of last year.