Wartsila to temporarily lay off 900 Finnish staff

HELSINKI, April 12 Mon Apr 12, 2010 6:07pm IST

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HELSINKI, April 12 (Reuters) - Finnish engine maker Wartsila (WRT1V.HE) said on Monday it would temporary lay off up to 900 workers at its plant in Vaasa, western Finland, to cut production levels in line with significantly lower demand.

The company said it would start negotiations about the layoffs with staff on Tuesday and estimated the layoffs would begin in mid May and would last at most 90 days per person.

"This is related to Wartsila's announcement earlier this year on capacity cuts. We believe and hope that the capacity demand will return," Juha Kytola, president of Wartsila Finland, told Reuters.

In January the company said it would cut some 1,400 jobs and move production to China to boost competitiveness amid tough market conditions. (Reporting by Terhi Kinnunen; Editing by David Holmes)