NOKIA, Finland—Nokian Tyres is continuing with plans to build a third tire plant, despite major cutbacks announced last week at its Finnish plant, according to a senior company official.
“A decision on the location of the third plant will be made in the first half of 2016,” said Antti-Jussi Tahtinen, vice president of marketing and communications.
According to the official, possible locations remain the same as previously announced: Eastern Europe, North America and Asia—possibly China.
He also confirmed that a new production line has now been added to Nokian facilities in Vsevolozhsk, near Saint Petersburg, Russia. The line, however, is not fully manned at the moment.
Nokian's expansion plans are still on the table despite its announcement last week that it would cut jobs and output at its facility in Nokia, Finland.
Nokian Tyres announced that it would start statutory negotiations with the 900 affected employees in Finland by mid-August in a bid to adjust its operations.
The company said that the agenda for the negotiations included a plan to decrease the annual output of passenger car tire production at the Nokia factory, with the aim of saving about $8.86 million per year.
The plan will involve a maximum of 150 job cuts, Nokian added.
Nokian downgraded its outlook for 2015 because of the weakened economic situation in Russia and CIS countries.