SON, THE NETHERLANDS – Neways Electronics plans to terminate production activities at its subsidiary in Kassel, Germany, after a major fire in September brought all production at the site to a halt. The EMS company said that after an evaluation of its options, there's no alternative other than to terminate Neways Electronics Production's production activities.

"Rebuilding the facility and another relocation of the production activities on behalf of clients would entail a multitude of undesirable financial and operational complications," the EMS company said. 

The company will enter discussions with the works council over the fate of its 120 employees in Kassel, some of which might be offered other positions at Neways.

All NEK’s production activities have been relocated to other Neways operating companies, and some clients have since indicated they prefer their programs stay put. Some clients are still affected by the loss of hard-to-find components in the fire, Neways said, leading to some delays in orders.

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