Electronics Production | April 27, 2005
Perlos plans to close plant in Finland
Demand for the mechanical modules that Perlos manufactures for mobile phones is focusing on emerging markets in Asia, Central Europe and the Americas. This is a structural change, and over the long term, demand for Perlos’ production capacity in Finland will not correspond to demand in the past.
For this reason, Perlos is adjusting production capacity in Finland to match the prevailing situation. Perlos will immediately initiate investigations for discontinuing operations at the Ylöjärvi plant as one option for adjusting the capacity. The possible discontinuation would be implemented during the first quarter of 2006 at the latest. Co-determination negotiations with all personnel of the manufacturing organisation of the Ylöjärvi plant will begin on May 2, 2005. During the negotiations, Perlos will e.g. assess the opportunities for transferring Ylöjärvi employees to other Perlos plants. The Ylöjärvi plant employs approximately 600 people. Perlos’ CEO Isto Hantila says that the decision was made due to reasons of cost competitiveness, flexibility and logistics alike. - The Ylöjärvi plant’s operations are efficient, but in geographical terms it is isolated from our Finnish plant cluster in Joensuu. If Finnish functions were centralised in Joensuu, we would gain logistics benefits and it would be easier to boost operational efficiency in the future as well. The Perlos Group’s outlook for the rest of the year is unchanged. Both net sales and earnings in 2005 are expected to be heavily focused on the latter half of the year. Perlos will prepare itself to start the manufacture of numerous new products in the second half of the year. The Group’s net sales for the first quarter 2005 totalled EUR 124.4 million (EUR 127.1 million in 1-3/2004). Operating profit was EUR 4.4 million (EUR 17.1 million), or 3.5% (13.5 %) of net sales. The result for the review period was EUR 1.8 million (EUR 11.8 million).