The plant, producing decoration applications, has recently made heavy losses, the company said, and no longer fits its strategic vision.

The operating loss in 2011 was 2.8 million euros and in the first quarter this year 0.9 euro million. No quick solution to improve the profitability has been found according to the company.

Some 110 jobs will be lost according to the company.

Cencorp's decoration business includes, among others, chemical or laser etching of metal parts, metal and optical coatings, various decorative prints and digital image transfer decorations. Decoration business has been part of Cencorp's Special Components segment.

According to the company's updated strategy, introduced in April, decoration business no longer is part of the company's core business. In the Special Components segment, the company is aiming for growth especially in manufacturing of flexible circuits, fuel cells and components for other renewable energy technologies. Manufacturing of these products is the main focus of Cencorp's Beijing plant, says Iikka Savisalo, President and CEO of Cencorp.