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Electronics Production | February 04, 2010

Incap close Vuokatti unit, moves production to Estonia

Since last autumn the Finland based EMS provider Incap has been investigated possibilities to concentrate its European electronics manufacturing in Estonia.
As one alternative, it has been examined whether a third party could be found to continue running a part of the business in Vuokatti.

Since negotiations concerning eventual business transaction of the Vuokatti factory have so far been concluded with no results, the company plans to transfer the production to Estonia during the year 2010.

Concentration of electronics manufacturing into one unit in Europe is a part of the restructuring of production according to company strategy, and it will improve efficiency of operations and bring savings of approximately EUR 3 million in 2011.

As the planned restructuring of operations can lead to the closing down of the Vuokatti factory, Incap has started cooperation negotiations, which may include eventual redundancies of approximately 130 employees.

Based on the possible closing down of Vuokatti factory, Incap recognises a total of approx. EUR 2.5 million of non-recurring expenses in its fourth quarter result 2009. After the recognition, Incap Group's full-year operating profit 2009 is estimated, according to preliminary calculations, to be approx. EUR 4.9 million negative. Taking into consideration the provision made for the financial year 2008, there is altogether EUR 3.1 million reserved for the restructuring of production.

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