CommScope, Inc., a global leader in infrastructure solutions for communications networks, plans to relocate cable production from its Newton, NC, facility later this year. The consolidation of wireless network cable production into a larger existing manufacturing facility in Joliet, IL is expected to begin in September and be completed by year-end, resulting in the loss of approximately 85 hourly and salaried jobs in Newton.
“These actions are difficult yet unavoidable, and we regret the impact on our employees,” said Randy Crenshaw, executive vice president and chief supply officer, CommScope. “We are in the midst of a comprehensive review of our global manufacturing footprint as we work to improve facility utilization, minimize cost and protect the profitability of our business in response to reduced—and more volatile—customer spending patterns.”
CommScope’s Newton facility also houses another approximately 45 workers in non-manufacturing roles who are unaffected by the production relocation. They will remain at Newton, pending a decision about the facilities’ long-term future.
“We remain committed to global competitiveness and outstanding service to our customers,” Crenshaw said. “As we transition production from Newton to Joliet, we intend to ensure that customers continue receiving the superior service that they have come to expect from CommScope.”
CommScope expects cash restructuring costs of between $3 to 4 million related to this move and annualized savings of approximately the same amount upon completion.
About CommScope:
CommScope, Inc. (NYSE: CTV) (www.commscope.com) is a world leader in infrastructure solutions for communication networks. Through its Andrew Solutions™ brand, it is a global leader in radio frequency subsystem solutions for wireless networks. Through its SYSTIMAX® and Uniprise® brands, CommScope is a world leader in network infrastructure solutions, delivering a complete end-to-end physical layer solution, including cables and connectivity, enclosures, intelligent software and network design services, for business enterprise applications. CommScope also is 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 100 countries around the world.
This press release includes forward-looking statements that are based on information currently available to management, management’s beliefs, as well as on a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. For a more detailed description of the factors that could cause such a difference, please see CommScope’s filings with the Securities and Exchange Commission. In providing forward-looking statements, the company is not undertaking any duty or obligation to update these statements as a result of new information, future events or otherwise.
News Media Contact:
Bill Walter, CommScope
+1 708-236-6593 or publicrelations@commscope.com
or
Investor Contact:
Phil Armstrong, CommScope
+1 828-323-4848