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Ericsson to exit cable manufacturing business
2013-05-21 16:26:00| Telecompaper Headlines
(Telecompaper) Ericsson announced it is shutting down its business to manufacture network cables. The move will lead to the loss of 354 jobs at sites in Hudiksvall and Stockholm in Sweden. The company said demand for copper cable has declined and production of fibre cable has shifted to Asia where there is more demand, leading to overcapacity in the European market. The company also has a small market share in the business and has been operating below its capacity for some time. Net sales from the telecom cables operations in 2012 amounted to approximately SEK 1 billion. Exiting the business will lead to restructuring charges of around SEK 0.5 billion, to be divided roughly 50-50 over the second and third quarters of this year.
Tags: business
cable
manufacturing
exit
Category:Telecommunications