Electromechanic component contract manufacturer Incap (HEL: ICP1V) is closing its Helsinki sheet-metal mechanics factory. Incap has long been struggling with its profitability but has managed to claw forward aided by a thick battle vest gathered earlier. The closure of the Helsinki factory is a culmination of its drive for strategic structural change.
56 jobs will be lost, majority of which are blue-collar as production ends by autumn. Incap will transfer the production to its other factories with sheet-metal manufacturing moved mainly to Vaasa, Finland and to subcontractors and final assembly to Kuressaare, Estonia. Incap estimates annual savings of 1.6 million Euros in fixed costs. The factory is on leased premises.
President and CEO Sami Mykkänen says that the company tried to negotiate a sale of the business but failed to get a proper bid. The investments required to keep the factory competitive were too large for Incap to undertake at present. The stock is up slightly on low volume.
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