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Electronics Production | March 19, 2009

PKC starts negotiations in wiring harness production in Finland

PKC Group Oyj has issued a proposal to start co-determination negotiations concerning the wiring harness production in Kempele, Finland.

Co-determination negotiations for closing the wiring harness production in Kempele and its effects to the personnel are initiated in Kempele unit due to production and financial reasons. Negotiations concern PKC Group Oyj's Kempele plant organisation's personnel, and may lead to termination of employment relationship of a maximum of 226 persons. In order to serve other units and customers, also the possibility to rearrange work and/or reorganise operations is considered, which might decrease the amount of terminations. Continuing wiring harness production in Finland can no longer be deemed feasible due to weak profitability. The Group has five wiring harness factories in Europe, all of which are underutilised. By reducing the number of production units we would cut down fixed costs. The goal of the proposed arrangement is to gain annual cost savings of about EUR 6 million.
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