Nokian Tyres temporarily closes US and Russian factories due to COVID-19

Nokian Tyres plc Company Release March 26, 2020, at 9:00 a.m.

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 tire market, which is due to the COVID-19 outbreak. The company will provide an update once the negotiations have been concluded.

 

Nokian Tyres plc

Päivi Antola
SVP, Corporate Communications and Investor Relations

Further information:
Esa Eronen, SVP, Supply Operations, tel. +358 10 401 7281

 

Nokian Tyres develops and manufactures premium tires for people who value safety and sustainability. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2019, the company’s net sales were EUR 1.6 billion and it employed some 4,700 people. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com

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