The company plans to concentrate production of baseboard and melamine-faced products at its main manufacturing facility in Kitee from summer 2007.

The move will enable the development and manufacture of products for the furniture industry and the melamine-faced market to benefit from “substantial technology investments” made at Kitee in recent years.

Keuruu will now focus on the development and production of furniture fixings and components. As a result, around 65 jobs will be made redundant.

Andy Moore, managing director of Puhos Board UK, said: “In common with most manufacturing industries, making the best use of new technology is essential to provide customers with ‘best in class’ products in ever more competitive markets.

“Finland has an exemplary record for its industrial relations and I’m sure that Puhos will do all it can to minimise problems for those people affected by the changes.”