Perlos exits processing in Finland

Bitterly stung by a market slowdown, Finnish cellular phone parts molder Perlos announced last week it would stop plastics processing in Finland, resulting in the loss of some 1132 jobs and closing its two facilities in North Karelia by this autumn. About 200 head office staff will stay employed in Finland.

“Perlos has reached the conclusion that there are no possibilities to continue production operations in Finland,” the company said in a statement. Perlos in January announced the start of a restructuring program that it said could cost about 4000 employees their jobs.

Perlos also indicated last week that it is negotiating with several parties about the sale of functions unrelated to the manufacture of mobile phone systems. The negotiations concern parts of the special products and connectors business and the manufacture of injection molds and assembly lines (Perlos builds its own assembly equipment). A maximum of about 130 people work in these operations. Perlos is also attempting to attract other firms to its production operations in Finland.

Perlos intends to reduce annual expenses by more than €100 million by the end of 2007. Last year it shuttered a large facility near Fort Worth, TX, shifting work done there to a facility in Mexico.—[email protected]