Japanese car parts supplier Sumitomo Electric Wiring System (SEWS) will move its production from Slovakia to Romania.

The company has stopped the production at its plant in Topolcany, Slovakia, at the end of July, according to The Slovack Spectator. SEWS has decided to move to Romania due to the lower costs, as it’s trying to keep costs under control and remain competitive, said Mike Lawson, SEWS Slovakia director. The company has laid off 461 employees working at the plant in Slovakia.

Despite its decision to move its production to Romania, SEWS has decided to buy the plot under its plant in Topolcany.

The Japanese company was one of the biggest employers in Topolcany a few years ago. In 2002, it had over 1, 129 employees and planned to hire another 600. The crisis in 2009, however, hit the company, which laid off 700 people.

In Romania, the Japanese firm began its investments in 2000, when it built the cable factory in Deva. It later built another two plants in Orastie and Alba-Iulia. SEWS Romania had over 7,200 employees in 2013 and a turnover of over EUR 210 million. The company hasn’t published its results for 2014.

editor@romania-insider.com

(photo source: sewsus.com)