PKC Eesti, the Estonian arm of the listed Finnish manufacturer of cable harnesses for the automotive industry, is to close its plant in the North Estonian city of Keila next March and lay off 613 employees.
"We are moving from skill-based production to a knowledge-based economy, which will result in relocating labor-consuming production to PKC plants situated in Lithuania and Russia. PKC Eesti understands the complexity of the situation for the employees, and fully cooperates with the Unemployment Insurance Fund, local municipalities, possible employers and everybody else," PKC Eesti management board member Merle Montgomery said in a press release.
According to the company, PKC Eesti has to look for production possibilities in countries where production costs are smaller and possibilities of the labor market are more flexible to meet competition in the long run.
Last summer PKC closed its plant in Haapsalu and transfered some employees to the Keila plant. It can be seen in the PKC Group's annual report that the company is planning to close the Keila plant, but not before the first quarter of next year, when ongoing contracts have been fulfilled.
According to the company, competence units will remain in Keila to serve the European and South American business.
Editor: Editor: Dario Cavegn