SON, THE NETHERLANDS – Neways Electronics has reached agreement with a German labor board to lay off 120 workers at its defunct subsidiary in Kassel, Germany.

Neways Electronics Production was destroyed in a fire in September. The EMS company has decided not to rebuild, and programs have been transferred to other Neways operating companies.

Under the agreement with the works council, Neways will assist the displaced staff in finding appropriate work either within the company or elsewhere.

Neways also said it has reached agreement with its insurer on the main items of the damages payment related to the fire.

Damages suffered due to the loss of all stocks and inventory and the interruption of normal business will be covered by insurance. The payouts will insure Neways' results against a loss.