OREANDA-NEWS. February 09, 2010. The Finnish manufacturer of products for the electronics and mechanical industries Incap plans to close its Vuokatti factory in Finland and concentrate its European electronics manufacturing in Estonia.

Since negotiations concerning eventual business transaction of the Vuokatti factory have so far been concluded with no results, the company plans to transfer the production to Estonia during the year 2010, Incap said in a news release.

The closure of the Vuokatti plant spells redundancy to approximately 130 employees.

Concentration of electronics manufacturing into one unit in Europe is a part of the restructuring of production according to company strategy. It will improve the efficiency of operations and bring savings of approximately three million euros in 2011.

Incap has been exploring the possibility of concentrating its electronics manufacturing in Estonia since last fall, the company said.

Its existing factory in Estonia is located in Kuressaare in the island of Saaremaa.

Incap is listed on the Helsinki stock exchange.