The lawnmower manufacturer, Stiga, has announced 175 redundancies at its plant in Tranås in south central Sweden.
Instead production of the mowers will be moved to the company’s factory in Italy. The Stiga brand is owned by GGP Sweden.
“It was decided to combine the production here with our operation in Italy, which is much bigger,” CEO Per-Olof Rydh told news agency TT, citing low profitability, overcapacity and shrinking sales as the reason for the announcement.
“This is really not good,” said trade union chairman Mikael Stenquist at the plant.
“We have many elderly workers so this will be really tough for many of them. This region has been hit hard before and this won’t make things any better.”
The move is expected to take place in mid-2013.