ŠKODA Group’s Finnish subsidiary Škoda Transtech has begun consultation with employees at its rolling stock production plant in Otanmäki over organisational changes that may lead to reduction in staff numbers.

The company cites the long-term uncertainly created by its exclusion from the tender to supply up to 183 LRVs for Helsinki. Earlier this month Škoda Transtech filed an appeal with Finland’s Supreme Administrative Court contesting an earlier ruling by the Market Court that confirmed its exclusion from the tender. It also requested an interim measure to suspend the signing and execution of the contract awarded to Stadler.

Škoda Transtech filed a formal complaint with the Market Court in October 2025, after Helsinki Metropolitan Area Transport (PKO) awarded Stadler a contract to supply 63 LRVs, including a 30-year maintenance agreement and options for up to 120 additional vehicles.

As the Helsinki contract would have secured work for a significant proportion of the headcount at Otanmäki, Škoda Transtech says that the confirmation of its exclusion by the Finnish Market Court must now be taken into account when planning future production. “As it is not possible to maintain jobs at the current level over the long term without an adequate workload, the company may be forced to terminate employment contracts,” Škoda Transtech says.

Current negotiations will cover organisational restructuring, changes in working hours, modifications to job roles and responsibilities, and part-time arrangements. The permanent reduction in the workforce is estimated to affect a maximum of 200 employees at the Otanmäki plant which employs 600 people.

The company stresses that this will not affect its ability to continue production at Otanmäki and no current or future commitments are put at risk. It adds that it will continue to have a sufficient number of qualified employees to ensure the smooth delivery of all existing and future projects.

Škoda Transtech says it is one of the key manufacturing employers in the Kainuu region, with the wider impact of its operations extending to nearly 2000 people. Its parent Škoda Group says that it will continue to use the Otanmäki plant for future business opportunities in the Nordic region, including any further development related to the Helsinki LRV tender.

For detailed data on European fleet orders, subscribe to IRJ Pro