Swedish concern Volvo decided that the company will shut down its bus plant in Tampere, Finland. The factory operations will be moved to Wroclaw in Poland, where labour costs are appreciably lower.

The move came as a shock to workers in Tampere, who had not been prepared for such radical measures although a range of cost-efficiency and savings programmes had been in force at the plant for a couple of years. Around 300 people will lose their jobs.

The Wroclaw plant is Volvo's most important and most modern bus plant in Europe. 
Immediately after Poland took EU membership in 2004, annual production there was hiked up from around 500 to over 700 in the space of a couple of years. 
This year the plant, which employs around 1,500 persons, is expected to produce in the region of 800 buses for the domestic Polish market and for sale in Europe.

Source: Gazeta Wyborcza 06.03.2008,  Helsingin Sanomat http://www.hs.fi/english