Sweden’s AB Volvo begins to lay off some Russian employees

The emblem of Swedish truck maker Volvo is pictured on the IAA truck present in Hanover, September 22, 2016. REUTERS/Fabian Bimmer

HELSINKI, July 5 (Reuters) – Truck maker AB Volvo (VOLVb.ST) had begun shedding a few of its Russian employees and to scale down operations, however has not decided to go away the nation solely, it stated on Tuesday.

The Swedish agency in February suspended all gross sales, service and manufacturing in Russia, which final 12 months accounted for about 3% of its web group gross sales. learn extra

“Within the present state of affairs it isn’t potential for us to conduct operations in Russia,” a spokesperson stated in an emailed assertion to Reuters.

“Now we have due to this fact made the choice to adapt by cutting down our operations within the nation and to begin to scale back the variety of employees,” he stated, including that native administration was presently assessing what number of staff could be affected.

The corporate’s manufacturing website in Kaluga, close to Moscow, would proceed in idle mode, he stated.

The plant employs 600 folks and may produce 15,000 autos per 12 months.

($1 = 10.4993 Swedish crowns)

Reporting by Essi Lehto; modifying by Stine Jacobsen and Jason Neely

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