Electronics Production | October 25, 2004

Scanfil to terminate 88 employees

The statutory negotiations that began at Scanfil plc's subsidiary CPS Electronics Inc. on 13 September 2004 for production-related and economic reasons and in order to adjust the employer's operations have ended today, on 21 October 2004.
During the negotiations, the decision was made to terminate the employment of 88 employees at CPS Electronics Inc. Personnel reductions will be executed by 30 April 2005 when production activities in Tampere will end. Some of these employees will be able to continue in the service of Scanfil plc's other units.

Intense competition over prices in the contract manufacturing market will transfer production to bigger and lower cost level locations. In current market situation operations of CPS Electronics Inc. as a small independent unit are not profitable, so the production of the company will be transferred to Scanfil Group's Pärnu and Sievi plants by 30 April 2005. The objective is to improve Scanfil Group's competitiveness and ensure employment of other plants of the Group. This will make it possible to obtain volume discounts on materials purchases and join logistics and production, and thus to cut variable and fixed costs, among others.


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