Electronics company Energiks has decided to shut down its European manufacturing operations.
The company said that the move comes as the European Commission seeks to introduce new rules on electricity supply from renewable energy sources by 2022.
The new rules aim to reduce CO2 emissions from new electricity generation.
They include capping the maximum amount of electricity generated per hour and capping CO2 output per megawatt hour.
The rules also require the company to produce more electricity to meet its targets.
Electronics manufacturer Energies new chief executive said on Thursday the company would be taking a ‘back to basics’ approach.
“Electronics are the backbone of our businesses, and we will not take a back to basics approach,” said Energs new chief operating officer Thomas Fong.
Energiys is one of several major electronics companies that have recently decided to shutter plants in Europe.
Energys shares fell 0.6% to 8,622.52 euros on Thursday.
The company said it will take a “back to Basics” approach to the supply of electricity and would invest more than 1 trillion euros in research and development over the next five years to help develop a more energy-efficient electrical system.
In a statement, Energy said that it is the right thing to do in light of the new rules.
“We are investing in research, development and production to ensure our new technology can deliver more efficient, energy-saving solutions for our customers,” it said.
Electronics giant Intel is also planning to close its European plants.
Intel is the world’s biggest maker of microprocessors.