News from Notch Consulting, Inc.

May 29, 2012

Nokian will cut back tire production in Finland as its new Russian plant begins production

Filed under: Carbon Black, insoluble sulfur, Rubber, Rubber Chemicals, Silica, Tire Cord, Tires — Notch @ 11:06 pm

Nokian is scheduled to begin production at its new factory in Vsevolozhsk, Russia in June 2012. The factory is built alonside an existing plant. Two new production lines are scheduled to begin this year, with two more to begin production in 2013 and 2014. At that time, the plant’s annual capacity will be six million tires and the two Russian factories will have a combined annual capacity of approximately 17 million tires.

As production increases in Russia, Nokian is reducing work at its home factories. Starting in July, production at the tiremaker’s plant in Nokia will be cut back to a five day per week schedule. According to the company, the plant will continue to produce primarily for the Nordic countries. The modified production plan will lead to a cut in outsourced labour and the elimination of around 120 jobs. Nokian says a 30 million euro modernisation plan being carried out in the Nokia factory will enable it to operate with a lower workforce.

Rubber demand in China forecast to grow 7% in 2012

Filed under: Rubber — Notch @ 10:57 pm

Rubber demand in China is set to expand 7.2 percent in 2012, beating last year’s pace, as the government focuses on bolstering the world’s second-largest economy, an industry group said. Consumption is forecast to reach 7.4 million metric tons in 2012, up from 6.9 million metric tonnes in 2011 and 6.45 million tons in 2010, said Mary Xu, deputy secretary general of the China Rubber Industry Association, at the World Rubber Summit in Singapore. Of the total, 4 million tons will be the synthetic variety and 3.4 million tons natural rubber, she said. The government is paying, “more attention on the development of the auto industry,” Xu said.

Source: Rubber World

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