Aspocomp to close Teuva plant?

Aspocomp is actively seeking new customer groups to round out its operations in the telecommunications segment. Expansion targets include the automotive, pharmaceutical, industrial electronics and security/aerospace sectors in particular. As previously discussed with Evertiq, Aspocomp will will pursue growth not only in its main markets in Scandinavia and Central Europe, but also in North America. To a growing extent, products will be manufactured utilizing carefully selected and cost-effective production lines in Asia. In Finland, the company is looking into combining production and development activities and focusing on the latest and most challenging technologies as well as the production of small and quick-turn series. As part of Aspocomp’s strategic transformation the company has today issued a notice on statutory labor co-determination concerning all its personnel at the Teuva plant regarding the consolidation of production in Finland and the possible closing of the Teuva plant. The company expects that combining production and development in Finland will yield annual savings of approximately EUR 0.9 million. The cooperation negotiations concern a total of 36 employees. It is estimated that the cooperation negotiations will be concluded by the end of November. In the event the negotiations lead to the closing of the Teuva plant, it would generate a one-time cost of about EUR 1.5 million to be recognized in the last quarter of 2014.