SINGAPORE - Singapore Epson Industrial (SEP) will wind down operations at its local plant over the next three years in a move that is expected to affect some 350 employees.

The Japanese electronics firm known for its printers and projectors plans to scale back activities at its Tuas plant and transfer part of the plant’s operations to other facilities overseas by 2027, it said in an April 19 statement.

Activities at SEP’s plating plant and central warehouse in Jurong will be unaffected.

Epson’s regional headquarters for marketing and sales across South-east Asia, which is based in Singapore, will also continue to operate as usual.

The move follows directions from SEP’s headquarters in Japan and is part of Epson’s global production strategy.

Affected employees were informed of the company’s decision on April 19.

“The company has prepared a strong compensation package that will go above and beyond what is provided in the collective agreement to complete the transition,” SEP said in a statement.

SEP, whose employees have been represented by the Advanced Manufacturing Employees’ Union (AMEU) since 1988, said it informed the union of its decision ahead of the announcement and that the two parties will work closely to support affected employees.

Support will include retrenchment benefits that are in line with unionised norms, as well as additional retention packages, employment and employability support services, said AMEU in a separate statement.

AMEU executive secretary Teo Siew Pan said in a statement that SEP’s early notification of its decision gave both parties sufficient time to discuss and agree on the retrenchment support packages and additional assistance to tide impacted employees over the transition period.

“AMEU is assured that SEP is committed to supporting its affected employees and we will continue our close collaboration to ensure that employees’ well-being is taken care of,” the union said.

SEP was Epson’s first group company outside Japan and was established in Singapore in 1968.