CommScope shuts plants in Brazil and Europe
April 30, 2008 -- In moves related to last year's acquisition of Andrew Corp., CommScope plans to close its Jaguariuna, Brazil broadband facility, as well as certain operations in Belgium and Italy.
April 30, 2008 -- CommScope says it plans to close its Jaguariuna, Brazil broadband facility as part of the company's goal to eliminate duplicate manufacturing and distribution centers, the better to reduce costs and enhance its long-term competitive position.
The Jaguariuna facility, which employs approximately 200 people and primarily produces broadband cable products, is expected to close by the end of September, with most equipment redeployed to other facilities elsewhere in the world. These changes do not affect the company's other Brazilian facility located in Sorocaba or the company's commitment to providing Latin America customers with high-performance wireless, enterprise and broadband solutions.
"This is the latest step in our ongoing drive to improve our competitive position, enhance our long-term financial performance, and achieve our cost-synergy targets associated with the Andrew Corporation acquisition," comments CommScope's president and COO, Brian Garrett. "We regret the impact on our people in Jaguariuna and appreciate their many contributions during the past eight years. However, we have an extensive worldwide manufacturing and distribution footprint that can be better utilized and more efficiently operated by consolidating facilities. As we execute this manufacturing strategy we intend to make sure that our customers continue to receive the outstanding service that they have come to expect from CommScope."
The 221,000 square-foot Jaguariuna facility was purchased in June 2000. Both the costs and the savings related to the facility's closing will make up part of the projected total savings and transition costs announced in connection with CommScope's acquisition of Andrew, which was completed in December 2007.
Separately, CommScope Europe S.P.R.L. has notified its Works Council of its intention to discontinue production activities at its facility in Seneffe, Belgium. A final decision on the proposed restructuring will be made after a consultation period with the Works Council.
The company also has notified employees of its intent to proceed with the closing of its Capriate, Italy facility, which was acquired as part of the Andrew acquisition. Some Capriate activities will be centralized in the company's Agrate, Italy site. Discussion is ongoing to finalize these consolidation plans.