Scanfil to close two plants, axe 112

Scanfil plc's statutory employer-employee negotiations concerning its Äänekoski and Oulu plants, Group administration and the salaried employees of its Sievi units due to production and financial reasons and business restructuring ended today, on 19 March 2007. As a result of the negotiations the manufacturing operations of the Äänekoski plant will be transferred to Scanfil Group's other units by end of September. The remaining activities of the Oulu plant will end during the summer. A total of 95 workers and salaried employees of the Oulu and Äänekoski plants will be made redundant. The number of salaried employees and Group administration employees to be dismissed from the Sievi units is 17. Work can be offered to some of these people at the company's other plants. Since demand and production continue to concentrate on developing markets, operations in Finland need to be adapted to take account of the situation. The aim of the measures agreed on is to improve and maintain Scanfil's profitability, cost-efficiency and competitiveness in the rapidly changing contract manufacturing market. The adjustment measures are not expected to cause significant costs. The company has already taken the first steps to sell the Oulu and Äänekoski facilities.