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PKC Group Oyj is to start negotiations with workers over closing wiring harness production at its plant in Kempele.

In a statement the company said that negotiations may lead to the axing of up to 226 jobs.

However, it added that, to serve other units and customers, there was also the possibility to rearrange work and reorganise operations, which might decrease the number of jobs lost.                

“Continuing wiring harness production in Finland can no longer be deemed feasible due to weak profitability. The group has five wiring harness factories in Europe, all of which are underutilised. By reducing the number of production units we would cut down fixed costs,” the company said.

The goal is to reduce annual costs by about EUR6m.