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Scanfil to Restructure Operations in China
June 27, 2016 | ScanfilEstimated reading time: Less than a minute
Scanfil announced in the Interim Report on 29 April 2016 that measures to eliminate overlap and streamline the factory network have been started in China. As an outcome of these measures Scanfil Sweden AB’s Chinese subsidiary, Partnertech Electronics Co., Ltd. has on 27 June 2016 decided to cease the production at Dongguang plant in China. Production at Dongguang plant is estimated to end during the third quarter of 2016. Turnover of Partnertech Electronics Co., Ltd in 2015 was about EUR 19.5 million and operating loss about EUR 1.1 million. Part of the customer accounts of Dongguan will continue at Scanfil plants in Hangzhou and Suzhou.
Non-recurring costs related to the closure of the production is estimated to be approximately EUR 2 million. The respective negative cash impact is estimated at approximately EUR 1 million. Corresponding cost provision will be recognized in the second quarter of 2016.
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