Nokian Tyres starts negotiations to determine layoffs

Nov. 21, 2005

Earlier today, Nokian Tyres plc started the statutory negotiations necessary to determine any personnel layoffs. In addition, the company is looking into permanent dismissals of approximately 100 employees working at the car tire production plant in Nokia, Finland.

The aim of the procedure is to adjust car tire production with current tire demand and inventories.

The possible layoffs, which are expected to last a maximum of four weeks, potentially could involve anyone in all personnel groups working at the Nokia factory (i.e., a total of approximately 1,200 people).

The possible layoffs will not involve personnel working for the Nokian "Heavy Tyres" profit center or the Russian operation.

Nokian Tyres will release the results of the statutory negotiations as soon as they are finalized.

The procedure does not change the company's recent interim financial report for the first nine months of 2005, when Nokian announced the group's net sales were up by 13.7% to 445.6 million euros (versus 392 million euros for the same period in 2004). Operating results totaled 65.1 million euros compared to 65.2 million euros a year ago.

"The target for 2005 is to increase sales and to reach an operating profit on the same level as in 2004," said the company.