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Hundreds to lose jobs after automotive factory announces closure

  • 2014-08-07
  • From wire reports, TALLINN

(photo: delfi.ee)

Hundreds of people are set to lose their jobs in Estonia after an automotive industry factory announced they would be closing later this year.

PKC Group, one of Estonia's biggest exporters  of automotive wiring systems , announced it will close its factory in Haapsalu by the end of the year, Postimees Online reports.

PKC Eesti board chairman Lauti Rohtoja explained how changes in purchase behavior were reasons behind the closure.

However, PKC Eesti continues to operate in its factory in Keila, in the vicinity of Tallinn. Up to 120 people will be offered jobs in Keila as part of restructuring plans. The Keila plant currently employs 826 peoples. 59 will lose their jobs in the factory.

"I think we have a good social system and some work is offered in Haapsalu, so we will overcome it, but this is very bad news," said Mayor of Haapsalu Urmas Sukles.

There are around 4,700 tax payers in the resort town, thus PKC's employees form around 7% of tax revenue.

PKC Eesti is part of international PKC Group and is one of the most important exporters on Estonia. The company currently employees 1,173 people in Estonia in the Keila and Haapsalu plants.