Type
Offshoring/Delocalisation
Country
Finland
Region
Manner-Suomi; Etelä-Suomi; Varsinais-Suomi
Location of affected unit(s)
Salo
Sector
Manufacturing
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Electrical Equipment
27.40 - Manufacture of electric lighting equipment
New offshoring locations
Romania

140 jobs
Number of planned job losses
Job loss
Announcement Date
4 October 2016
Employment effect (start)
10 October 2016
Foreseen end date
31 December 2018

Description

Hella Lighting Finland has announced that it will disband its manufacturing of LED-products in Salo, Finland and move production to Romania, leading to 165 redundancies. Part of the company's product development and sales division will remain in Salo leaving approximately 15 jobs at the current factory. The redundancies will be executed over time, and the company aims to have disbanded all production by 2018. Employer-employee negotiations were initiated on 10 October 2016.

HELLA is a German company with a total of approximately 30,000 employees. 

Updated, 1/12/2016;Following concluded employer-employee negotiations the decision on closing the factory in Salo remains. 165 jobs will be cut and production moved to Romania. The factory will be shut down in stages with the first redundancies scheduled to be carried out during the summer of 2017. All production will be disbanded by the autumn of 2018.

Updated, 20/3/2017;Hella Lighting has decided to keep  some of the production of LED-products, especially products for cruise ships and buildings, in Salo, Finland. The factory will therefore not be closed as previously announced. Two reasons are put forward for keeping some production in Salo, Finland. Firstly, the workforce is highly specialised and highly familiar with the manufacturing. Secondly, the Turku Shipyard, a large customer, is growing, which is why production will be kept in close proximity to this customer. In total, 40 jobs will be kept at the factory, including previously announced sales and R&D positions.


Sources

  • 4 October 2016: Taloussanomat
  • 4 October 2016: Åbo Underrättelser
  • 25 November 2016: Talouselämä
  • 10 March 2017: Turun Sanomat

Citation

Eurofound (2016), Hella Lighting Finland, Offshoring/Delocalisation in Finland, factsheet number 88825, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88825.