HELSINKI -- PKC has signed an agreement to start negotiations on creating a joint venture with an undisclosed company specializing in electronics manufacturing.

The unnamed company, which has multiple manufacturing locations in Asia, will merge its electronics businesses and operations with those of PKC. PKC will continue to hold a stake in the company.

Establishment of the JV is subject to negotiating the definitive agreements and authority approvals, and is scheduled to close in the first quarter 2017. PKC will going forward classify its electronics business as a non-current asset held for sale and reported as discontinued operations. PKC said the deal will impact its revenue and EBITDA outlook for 2016.

PKC indicated that the other firm has a "long history" of serving multinational corporations, especially in medical device segment. PKC’s Electronics business focuses on the industrial, telecommunication and medical device segments.

In a press release, PKC Group CEO Matti Hyytiäinen said, "We are glad to have this opportunity to further develop our Electronics business. This new entity will have much better ability to serve its customers with broader offering and presence in Asia and Europe. The bigger size will also bring improved competitiveness which enables serving customers growing needs. PKC will remain as a long-term shareholder in the entity but our partner will have the leading role and majority of the shares. We are confident that this arrangement will be positive to customers, employees and shareholders.

PKC is one of the world's largest providers of wiring harnesses. Its contract electronics business is roughly $100 million a year in revenue.

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