Japanese Fujikura has decided to discontinue the cable production in Chuvashia for Volkswagen. The relevant statement has been made by the republic’s Ministry of Economic Development. The enterprise will be liquidated in the following months.
The decision has been taken due to the economic unprofitability of production in connection with the sudden changes in euro-to-ruble exchange rates, as well as the diminishing purchasing power in the automobile market. As highlighted in the statement: “The employment agencies have been informed to support the company staff in their search for new jobs.”
Fujikura will pay employees a mandatory severance pay, equivalent to three months’ average earnings. Also, each employee will receive a payment under a special compensation programme on the last working day.
Fujikura commenced operations in October 2015. The cable production took place on premises rented from Cheboksary Electrical Equipment Plant.