NOKIA, Finland — Nokian Tyres P.L.C. has opened negotiations with employees at its operations in Finland about possible temporary layoffs amid the Covid-19 outbreak and slow demand in Europe.
The company also is planning to adjust production at its Vzevolozhsk, Russia, plant in line with global demand, and has suspended recruitment of additional employees at its factory in Dayton, Tenn., which still is in a ramp-up phase.
In Finland, Nokian opened negotiations March 18 with employee representations about potential layoffs, which could affect the firm's 1,600-plus workers there for up to 90 days. Government restrictions in Finland on mobility during the outbreak would affect the amount of work at certain functions, the company pointed out.
Nokian also said it had introduced temporary travel bans and moved to remote-working where possible.
In the U.S., Nokian stressed that the Dayton factory remains open and it intends to resume the hiring process "as circumstances allow."
In Spain, Nokian has stopped construction work at the site of its new testing center, in Santa Cruz De La Zarza, delaying the project launch scheduled for later this year.
Nokian went on to say that its raw-materials supply chain is not being impacted by the coronavirus outbreak.
"So far, all our raw materials suppliers operate as normal. However, we do expect delays in transportation," the tire maker said.