Nokian Heavy Tyres Ltd. has completed negotiations regarding plans to lower production at its factory in Nokia, Finland. As the tyre maker previously announced, temporary layoffs will affect approximately 160 people.
The crisis currently unfolding in Ukraine is placing logistics and transportation in Europe under strain, and like many manufacturers, Michelin Group is facing “major” issues supplying its plants and delivering to customers. The company says it will work to “optimise operations and adapt flow management” by stopping production at some of its European plants for a few days in the coming weeks. Each site will decide specific duration and implementation.
Tyre maker and automotive technology company Continental has ceased production in some of its plants until further notice. It informed the Frankfurt Stock Exchange of measures put in place to adjust production around the world in response to the spread of the coronavirus and the effect of this upon vehicle production. Continental confirmed that its adjustments include complete production stops in some cases.
The the economic situation in Russia and the CIS countries has led to a downgrade in Nokian Tyres’ 2015 outlook. The Finnish tyre maker says sales of passenger car tyres have continued to decline in this region, and those tyres being purchased within the Russian market are increasingly lower B or C segment brand products. The company’s own sales in Russia were down 39.1 per cent year-on-year during the first half of 2015.
The Belshina tyre plant is scheduled to re-start production today (1 April 2015) after production ceased on 26 March, according to the Belarusian Independent Trade Union various (BITU), in a move that is seen as indicative of wider economic concerns and is blamed on low-cost Asian tyre imports.
Artur Mikhalap, BITU chairman, commented: “The plant stopped completely, reason unknown to me, but the thinking is the same as in most enterprises – no market. Warehouses are filled up. According to my information the plant stopped only for five days, until April 1.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
