Type
Offshoring/Delocalisation
Country
Finland
Region
Manner-Suomi; Länsi-Suomi;
Location of affected unit(s)
Oulu, Äänekoski, Sievi
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
Not Available

112 jobs
Number of planned job losses
Job loss
Announcement Date
11 April 2006
Employment effect (start)
Foreseen end date
30 September 2007

Description

The electronics manufacturing services company Scanfil has concluded its personnel negotiations on 19 March 2007, which will affect the Äänekoski and Oulu plants. The group administration (white-collar) and blue-collar employees of its Sievi units will also be affected due to production and financial reasons. As a result of the negotiations the manufacturing operations of the Äänekoski plant will be transferred to Scanfil Group's other units by the end of September 2007. The remaining activities of the Oulu plant will end during the summer 2007. A total of 95 workers of the Oulu and Äänekoski plants will be made redundant. The number of blue and white collar employees to be dismissed at the Sievi units is 17. Work may be offered to some of these people at other plants of the company. Scanfil announced on 10 April 2006 the initiation of personnel negotiations concerning all 120 employees of Oulu plant. According to the company, in order to retain the group's competitiveness, products of the Oulu plant have to be manufactured at other Scanfil Group's plants with lower costs. The plan is to transfer most of the production of the Oulu plant into the Group's other units. Scanfil has previously reported on the impact of the drop in prices and delivery volumes of broadband products on the turnover of the 1st half of 2006. During the 1st quarter, volumes of other network products grew but turnover was slowed down by the product and supply structures with lower production costs of new, technically more advanced products. Due to price competition and the lower production costs of the new products, Scanfil is now updating the previously issued turnover estimate for the 1st half of the year. Based on available information, the turnover for 1st half of 2006 is estimated to fall by about 20% compared to the corresponding period last year. According to Helsingin Sanomat 31 May 2006, the personnel negotiation that started on 10 April 2006 for production and economic reasons have been closed on 30 May 2006. During the negotiations, it was decided to cut 103 jobs (blue and white collar) at Oulu plant by the end of the year 2006. Scanfil focuses its production on growing markets in lower-cost countries. Few employees will remain at Oulu plant in support functions for other Group units.


Sources

  • 31 May 2006: Helsingin Sanomat
  • 20 March 2007: Helsingin Sanomat
  • 11 April 2006: Taloussanomat

Citation

Eurofound (2006), Scanfil, Offshoring/Delocalisation in Finland, factsheet number 63324, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63324.