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© pinonsky dreamstime.com Electronics Production | December 19, 2014

Connect Group to restructure Poperinge plant

Connect Group NV has announced to the work council of its plant in Poperinge, Belgium, the intention to restructure the plant, resulting in the collective dismissal of 23 whitecollar and 60 blue-collar employees.

Over the past few years, Connect Group has evolved from a purely subcontracting company producing mainly standard products – to a more project-driven technology company, with limited production of standard products. Due to major developments in the market, structural changes are necessary to regain competitiveness. The Poperinge plant's largest costumer has relocated its production. This along with the fact that the overall economic situation in Western Europe has changed. High wage costs have meant that mass production has been shifted to Eastern Europe, with the focus in Western Europe being towards technological competence. The Poperinge plant has been suffering from overcapacity and structural losses for several years now, which continue to increase. Due to this, Connect Group is no longer in a position to handle larger production volumes in its Belgian plant in Poperinge. The facility will however continue to produce prototypes, initial small series of high-end products and specific orders. “This obviously has repercussions on the workforce. We are increasingly being forced to deploy our employees in a multidisciplinary manner, and more deep-going and far-reaching cooperation is needed between the different departments,” the company states in a press release.
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