MANUFACTURER Kesla has announced it is likely to furlough production staff for up to 90 days - or until further notice - as it struggles to recover from "ongoing market uncertainty". 

The Finland-based firm says it is making the move while its sales, order volume, and factory workload remain at "a low level". It is the second time this year that Kesla has cut its cloth, having previously said it had to reduce its workforce costs by 30 per cent. 

Kesla bosses have also confirmed they will "examine the reorganisation of its business areas", which could see some jobs go at the company, but the manufacturer says it will initially focus on adjusting existing roles or terms of employment. 

A statement from Kesla's head office read: "Demand for Kesla Oyj's products has not recovered as anticipated due to ongoing market uncertainty.

"As a result, Kesla Oyj's sales—and consequently the order volume and workload at its factories—remain at a low level.

"Given these factors, Kesla Oyj is planning to adjust its operations to align with current demand and existing orders.

"The company will begin change negotiations, which may lead to furloughs of production personnel for up to 90 days or, in some cases, until further notice.

"Additionally, Kesla Oyj will examine the reorganisation of its business areas during the change negotiations to enhance its customer interface organisation, customer processes, and the quality of customer experience.

"This would involve utilising customer-facing personnel more effectively and flexibly in selected markets.

"These plans are not primarily expected to reduce the number of employees.

"Instead, they may lead to potential adjustments in the roles and/or essential terms of employment for employees working within the customer interface or associated with this business area.

"Should any role or job function be discontinued due to changes in the organisational model, Kesla Oyj will aim to work cooperatively with affected employees to find suitable alternative roles within the company.

"The initial stage of the change negotiations will involve Kesla Oyj's entire staff and all personnel groups. The negotiations are expected to last up to six weeks."

Established in 1960, Kesla has production facilities in Joensuu, Kesälahti and Ilomantsi as well as a sales office in Appenweier, Germany. Kesla currently employs around 260 people.