Volvo plant in Russia suspends truck production, cuts 30% of staff

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Interfax / February 6, 2015

"ZAO Volvo Vostok" which has control over Volvo plants in Russia is suspending truck production at its Volvo Group Trucks plant in Kaluga and is laying off almost one-third of its staff as of February 11, the company's spokesman Oleg Vasilchenko told Interfax.

The company will lay off 30% of the office staff and production line workers who will be compensated in accordance with the Russian Labor Code, he said.

"The remainder of the staff will remain on the plant's payroll with their salaries. Of their numbers, about one-third will be employed as they are now for the duration of the temporary stoppage," Vasilchenko said.

Trucks will be temporarily supplied to Russian customers from Volvo Group's European facilities in Sweden, Belgium and France.

The decision to lay off staff and suspend production was due to the unfavorable market situation and the continuing fall in demand for commercial vehicles.

It was reported earlier that the unfavorable market conditions last summer forced the company to extend the corporate summer vacation by two weeks.

The Volvo Group Trucks plant opened in January 2009. The 15,000-vehicle-capacity plant makes trucks for Volvo and Renault. The plant employs 700 people.