VASTERAS, SWEDEN -- Enics Sweden has begun negotiations with employee unions at its plants here as a precursor to layoffs or even shutdowns. The moves will affect plants in Västerås and Malmö, the company said in a statement today.

Hannu Keinänen, president and CEO of the EMS firm, said, "To secure sustainable and long-term profitability in the Swedish operations and overall competitiveness in the global market, we need to assess the feasibility of continuing with two operational units in Sweden. Therefore we have initiated a consultation process with Swedish employee unions with to discuss the plan to the transfer the Malmö factory business to other Enics Business Units, consolidate the Swedish operations in Västerås and execute a controlled ramp-down of the Malmö operations without disturbing customer relations. "Our target is to further solidify and enhance our position as full-service provider of high-value add EMS services in Sweden, close by our key customers’ R&D centers."

Enics is the world's 36th largest EMS company, according to the CIRCUITS ASSEMBLY Top 50.

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