Elcoteq Personnel Reductions in Lohja Smaller Than Expected

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Helsinki, Finland — As a result of the personnel negotiations initiated in March, Elcoteq will cut 86 jobs in terminal products and communications network equipment production functions at the Lohja plants.

The redundancies will apply to 11 white-collar workers and 75 blue-collar workers. At the beginning of the negotiations Elcoteq estimated that the personnel reductions would apply to 160 people. The actual number turned out to be substantially lower, mainly due to internal personnel arrangements.

The personnel reductions are part of Elcoteq's efforts to restore profitability in terminal products and communications network equipment production at its Lohja plants. Due to tight competition in the manufacture of these products, the profitability of the unit has deteriorated during the past years.

Elcoteq currently has three units in Lohja: production of terminal products and communications network equipment, production of industrial electronics, and an NPI (New Product Introduction) Center. Elcoteq also has a few dozen people in Lohja working in corporate accounting, finance and information management functions. The now completed personnel negotiations involved only the terminal products and communications network equipment unit and its 358 employees. Elcoteq has altogether approximately 660 employees at its Lohja units.

Elcoteq Network Corp. is the largest European electronics manufacturing services (EMS) company and one of the global leaders in its field. For more information, visit www.elcoteq.com.



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