BUDAPEST, Jan 27 (Reuters) - Hungarian electronic components maker Videoton said on Monday it would lay off nearly 1,000 staff by end-September as U.S. partner MSL shifts cable production to other plants in Hungary and Bulgaria, a move prompted by lower sales volume.
Videoton cited rising Hungarian wages for skilled labour for a decision that in practical terms ends its policy of hiring contract staff.
The company, which operates manufacturing plants in nine locations in Hungary and Bulgaria, will lay off 305 staff at Enying and 620 at Veszprem, both in western Hungary.
Videoton said it managed to maintain 2001 revenue levels -- at around 68.8 billion forints ($305.7 million) -- last year, but it expected revenues to drop until the third quarter.
Videoton and MSL said last week they planned a strategic alliance to offer customers more complete and cost-effective global solutions.
"Videoton's ability to provide local support and expertise in Hungary and Bulgaria is unmatched," said Bob Bradshaw, MSL CEO in a separate statement.