Finland’s PKC Group (Helsinki; www.pkcgroup.com) is consolidating its wiring systems business in Europe and South America. The company uses (unspecified) plastics and PVC in the manufacture of various wiring and electronics components for the commercial vehicle industry and other selected segments. PKC said the move has been prompted by the expectation of a change in purchasing behaviour from a consolidating customer base, which will require a different production structure.

Production in Sosnowiec / Poland, and Haapsalu / Estonia, will be moved to factories in Serbia and Lithuania where more than half of PKC’s European capacity will be based by the end of 2016. Output at the plants in Poland and Estonia, as well as in Itajuba / Brazil, will be ramped down by the end of 2014. The company’s New Product Introduction (NPI) operations for Europe and South America will be centralised at facilities in Keila / Estonia.

The programme, which is due to be finished by the end of March 2016, is expected to result in annual cost savings of EUR 12-14m. Overlapping sales, R&D, purchasing, administration and production support functions in Europe and South America will also be streamlined. PKC said it is anticipating growth opportunities from the benefits of scale gained and the redirection of resources. The group’s revenue in 2013 totalled EUR 884m.