Due to the impacts of COVID-19, Nokian Tyres will temporarily cease production at its US and Russian factories to guarantee the health and safety of its employees. The Dayton factory closure is effective this Friday, March 27, and will last a minimum of two weeks. At Nokian Tyres’ Russian factory, the production shutdown will start on Monday, March 30 and will last for a week. Nokian Tyres will continue supplying customers through its regional warehouses.
In the US, Rhea County, Tennessee issued a ‘Safer at home’ order on Wednesday. In order to safeguard the well-being of Nokian Tyres employees and the Southeast Tennessee community, Nokian Tyres will temporarily cease production as of Friday. The temporary closure will not significantly impact the company’s projected production volume or regional growth plan.
In Russia, President Vladimir Putin has issued a decree that the period of one week starting from March 30 will be a nationwide holiday to encourage people to stay home and slow the spread of the COVID-19. Nokian Tyres’ Vsevolozhsk factory is planned to be closed for this period. The temporary closure will not impact the company’s projected production volume during this year.
“We have completed the necessary preparations at both factories and are ready to follow guidelines provided by local authorities. The company will continue to take all reasonable steps necessary to help limit the spread of COVID-19,” said Esa Eronen, SVP, Supply Operations at Nokian Tyres.
On March 18, Nokian Tyres plc entered into employee cooperation negotiations to determine whether Finland-based employees may be subject to temporary layoffs. The background for these activities is collapsed demand in the European car and tyre market, which is due to the COVID-19 outbreak. The company will provide an update once the negotiations have been concluded.
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