VALMET AUTOMOTIVE on Tuesday announced it intends to launch consultative negotiations to adapt in terms of both finances and production to a decline in production volumes.
The Finnish contract automotive manufacturer stated in a press release that the adjustments would affect no more than 630 employees at its assembly plant in Uusikaupunki, Southern Finland. The adjustments are to be carried out as both temporary and permanent lay-offs as well as changes in job descriptions.
No adjustments are required in the battery business, according to Valmet Automotive.
Pasi Rannus, the director of production at Valmet Automotive, stated to YLE on Tuesday that the assembly plant has no choice but to respond to the global situation.
“We’ve talked about this with a client for quite some time. The global situation has affected demand for the goods we produce for a long time. We’re naturally part of a global network and automotive industry,” he said.
Rannus refrained from speculating on the outcome of the negotiations, underscoring that it is important not to interfere in the negotiations.
“The time for decisions is once the negotiations have been completed,” he said. “The law stipulates that consultative negotiations in a company of our size must last at least six weeks.”
YLE on Tuesday highlighted that the past couple of months have been tumultuous for Valmet Automotive.
In October, the company called off its initial public offering only a couple of weeks after announcing its plan, citing the eroding economic outlook and market uncertainty. The company, on the other hand, recently started mass production of Lightyear 0, a solar-powered electric vehicle designed by the Netherland’s Lightyear, and put pen to paper on a deal to manufacture an electric solar car called Sono Sion for Germany’s Sono Motors. The production of the latter model is expected to start in the second half of this year.
In November, Valmet Automotive declared its interest in expanding its plot and manufacturing site in Uusikaupunki.
Aleksi Teivainen – HT