CommScope, Inc., a world leader in infrastructure solutions for communications networks, will discontinue operations in the Stratford, England area and consolidate work into existing manufacturing facilities, as part of previously-announced plans to optimize its global manufacturing network.
The decision to discontinue Microwave antenna operations in Stratford, Bidford and Long Marston and close the three facilities by year-end 2009 follows completion of the collective employee consultation period. An undetermined number of positions will be added in Goa, India; Brno, Czech Republic and Suzhou, China to accommodate work shifted from England into those Andrew Antenna, Cable and Cabinet Group segment facilities.
Separately, CommScope is proceeding with the previously announced relocation of base station antenna production from Slatina, Brno, Czech Republic to Andrew’s Suzhou, China facility by year-end 2008 and the relocation by early 2009 of connector assembly, accessories and cable assembly operations to other Andrew locations or to vendors. In addition, in Lochgelly, Scotland, the consolidation of machine shop operations into other facilities, the job eliminations related to changes in cable re-roll processes and the reductions of some support functions are going ahead as previously announced.
With previously announced actions already undertaken to close the Enterprise segment’s Brisbane, Australia facility, more than 700 existing jobs are being affected, with the majority of these positions planned for relocation to other existing company locations.
In a new initiative, CommScope has informed employees of plans to relocate base station antenna production from Norcross, Georgia to an existing Andrew facility in Reynosa, Mexico. The Norcross facility will close by mid-January, affecting approximately 55 employees there.
“These actions are part of CommScope’s goal to utilize facilities more efficiently, reduce costs and enhance its long-term competitive position in markets around the world,” said Brian Garrett, CommScope president and chief operating officer. “It is regrettable that these actions will impact some of our people, however the long-term well-being of our global employee population, as well as customers and shareholders, is best served by reducing costs whenever possible while addressing the changing needs of our customers.”
About CommScope
CommScope, Inc. (NYSE: CTV –www.commscope.com) is a world leader in infrastructure solutions for communication networks. Through its Andrew® brand, it is a global leader in radio frequency subsystem solutions for wireless networks. Through its SYSTIMAX® and Uniprise® brands, CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the premier manufacturer of coaxial cable for broadband cable television networks and one of the leading North American providers of environmentally secure cabinets for DSL and FTTN applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with infrastructure solutions for evolving global communications networks in more than 130 countries around the world.
This press release contains forward-looking statements regarding, among other things, the announced global manufacturing changes, business position, plans, outlook, integration, synergies and other financial items relating to CommScope that are based on information currently available to management, management’s beliefs and a number of assumptions concerning future events. Statements made in the future tense, and statements using words such as “intend,”“goal,”“estimate,”“expect,”“project,”“projections,”“plans,”“anticipate,”“should,”“designed to,”“foreseeable future,”“believe,” confident,”“think,”“scheduled,”“outlook,”“guidance” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not a guarantee of performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and are beyond the control of CommScope, and therefore should be carefully considered. Factors that could cause actual results of CommScope to differ materially include, but are not limited to, continued economic weakness and uncertainties, the challenges of achieving anticipated synergies related to manufacturing initiatives; delays or challenges related to removing, transporting or reinstalling equipment; the ability to retain qualified employees and existing business alliances; customer demand for our products and the ability to maintain existing business alliances with key customers or distributors; competitive pricing and acceptance of products; industry competition and the ability to retain customers through product innovation; changes in cost and availability of key raw materials and the ability to recover these costs from customers through pricing actions; concentration of sales among a limited number of customers or distributors; the risk that internal production capacity and that of contract manufacturers may be insufficient to meet customer demand or quality standards for our products; the risk that customers might cancel orders placed or that orders currently placed may affect order levels in the future; continuing consolidation among customers; possible production disruption due to supplier or contract manufacturer bankruptcy, reorganization or restructuring; achievement of cost reduction synergies expected from the acquisition of Andrew; significant international operations; ability to integrate the CommScope and Andrew businesses; ability to fully realize anticipated benefits from prior or future acquisitions or equity investments; substantial indebtedness as a result of the acquisition of Andrew; dependence upon key personnel; ability to integrate Andrew’s systems of internal control over financial reporting with ours; realignment of global manufacturing capacity; purchase accounting costs; protecting or defending intellectual property; ability to obtain capital on commercially reasonable terms; fluctuations in interest rates; the ability to achieve expected sales growth and earnings goals; the outcome of the TruePosition, Inc. litigations and regulatory changes affecting us or the industries we serve. For a more complete description of factors that could cause such a difference, please see CommScope’s filings with the Securities and Exchange Commission (SEC), which are available on CommScope’s website or at www.sec.gov. In providing forward-looking statements, CommScope does not intend, and does not undertake any duty or obligation, to update these statements as a result of new information, future events or otherwise.
CommScope
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