Type
Offshoring/Delocalisation
Country
Finland
Region
Manner-Suomi; Etelä-Suomi; Uusimaa
Location of affected unit(s)
Saarijärvi
Sector
Manufacturing
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Computer, Electronic And Optical Products
26 - Manufacture of computer, electronic and optical products
New offshoring locations
Estonia, China

82 jobs
Number of planned job losses
Job loss
Announcement Date
17 July 2006
Employment effect (start)
Foreseen end date
31 May 2007

Description

The personnel negotiations that began at electronics manufacturer Efore in July 2006 regarding the discontinuing of production at Saarijärvi, were concluded on August 28, 2006. A total of 82 employees are to be given notice. The redundancies will take place in phases until the end of May 2007. As a consequence of these decisions, Efore's production at Saarijärvi will be transferred to the factories in Estonia and China. Existing product development functions and different functions related to After Sales Services will remain at Saarijärvi. These measures will ensure development of long- term competitiveness for the company. At the same time, the company will continue to focus strongly on serving existing customers and new customer acquisition. The non-recurring expenses from the redundancies and discontinuing of production at the Saarijärvi factory will be recorded in the third-quarter result of the company. In July 2006 Efore started to streamline its operations to improve profitability and launched a procedure to explore the discontinuing of production at Saarijärvi. The company issued an invitation to personnel to participate in personnel negotiations. The purpose of these negotiations was to explore the potential for transferring the production functions remaining at Saarijärvi to the company's production facilitities in Estonia and China, and also to consider which functions would be retained at Saarijärvi. Potential for providing employment for Saarijärvi personnel at other company facilities was also to be explored in the course of the negotiations. Efore has a total of 285 employees in Finland at the moment. The Efore electronics group is an international company providing services for the telecommunications, industrial electronics and health-care industries. Its operations comprise custom-designed power supplies, DC power systems, electronics design and manufacturing services (EDMS), and maintenance and repair services. In the fiscal year ending in October 2005 the Group's total workforce was 751.


Sources

  • 18 July 2006: Helsingin Sanomat
  • 31 August 2006: Taloussanomat
  • : (www.efore.com)

Citation

Eurofound (2006), Efore, Offshoring/Delocalisation in Finland, factsheet number 63809, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63809.