Subaru carmaker Fuji Heavy Industries plans to employ 200 workers who will stop working at Sanyo Electric's plant in Gunma Prefecture late this month, industry sources said.

Fuji Heavy will hire the Sanyo workers as regular employees at its auto plant in the same prefecture to boost vehicle production and maintain local employment, the sources told Kyodo News.

Sanyo said the workers were among around 800 employees being cut at the Gunma plant in line with its parent Panasonic's strategy to streamline personnel within the group.