Swiss manufacturing giant Carlo Gavazzi will be closing its Malta operations after nearly four decades, putting around 140 jobs on the line.

The company announced on Friday that it is restructuring its global footprint, with production in Malta to be gradually wound down and moved to plants in Mexico and China.

“The closure is due to external constraints and the need to consolidate operations across our global footprint,” the company said, citing rising costs and difficulties in recruiting skilled workers.

The General Workers Union (GWU) said the “entire workforce” will eventually be cut, though no redundancies will take place for at least seven months. The union will now begin a 30-day consultation process with the company.

“This is a serious blow to a loyal and long-serving workforce who have given decades of their lives to this company,” GWU Secretary-General Josef Bugeja said. “Our absolute and immediate priority is the welfare of these 140 workers and their families.”

The GWU said it would also be engaging with government and private employers to try to secure alternative jobs for those affected.

Economy Minister Silvio Schembri said government was “deeply concerned” by the development and would work with the company to ensure employees are supported through training and redeployment opportunities.

Carlo Gavazzi first set up shop in Malta in 1988 as a small assembly operation, later expanding into research, product management and full-scale manufacturing. In 2006, the group designated Malta as one of its key production sites — a decision the GWU described as “a testament to the skill and dedication of local employees.”

The company has faced challenges before, including cutting workers’ hours in the aftermath of the 2008 financial crisis. But Friday’s announcement marks a definitive exit after years of uncertainty.

Carlo Gavazzi said it is leaving Malta “with deep appreciation for the decades of collaboration with the Maltese government and the dedication of its local workforce.”