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Alcatel to shut down local manufacturing
By Kate Chappell, Ottawa Business Journal Staff
Fri, Oct 17, 2003 7:00 AM EST
Alcatel will shut down its local manufacturing plant and outsource production, a decision that will affect 110 workers.
The telecom giant, whose Canadian headquarters are located at 600 March Rd., announced the decision internally several weeks ago.
A spokesperson said the decision is in line with the overall industry trend towards outsourcing.
"We have initiated a process to outsource all remaining Ottawa-based manufacturing operations," said Amy McLeod. "We're currently looking to select a vendor, and that process will take until the end of the year."
It's unclear how the 110 local employees will be affected, but McLeod said the human resources department will attempt to "place them where opportunities exist."
Alcatel's latest numbers indicate it employs approximately 75,000 people worldwide, a figure that's expected to fall to 60,000 by the end of the year. In Canada, the firm employs 2,000 people, half of the number that was employed during the technology boom three years ago.
McLeod said there will still be people working locally in R&D, administration, sales and marketing, procurement, test engineering, planning, inventory and project management.
The 140,000-square-foot manufacturing plant at 349 Terry Fox Dr., as well as 96,000 square feet of office space will be put up for sublease on Jan. 1. Prior to that date, Alcatel will consolidate all of its workers at the March Road facility.
In the company's second quarter results announced last June, it was reported that 60 local R&D staff were cut as part of an aggressive restructuring effort aimed at cutting costs. A company official stated that while the environment is still hostile, it's expected revenues will remain stable in the third quarter. Alcatel will report its third quarter results on Oct. 30.
Shaun McEwen, the chief financial officer for BreconRidge Manufacturing Solutions Corporation, said his company would be interested in the opportunity to manufacture Alcatel's product. However, McEwen believes the company would probably be predisposed to go with a multinational firm that already does some if its manufacturing, like Celestica.
"I do believe the majority of their outsourcing is already done on a global basis ... but we do a reasonable amount of work for them," McEwen said.
BreconRidge is an electronics manufacturing firm which recently took over the lease for Nortel Networks' vacant manufacturing plant on Palladium Drive.
The 240,000-square-foot Alcatel complex will drive Kanata's vacancy rate up even further. In addition to this large chunk of space, that of bankrupt Ceyba will soon go on the market, which measures 100,000 square feet.
By Kate Chappell, Ottawa Business Journal Staff
Fri, Oct 17, 2003 7:00 AM EST
Alcatel will shut down its local manufacturing plant and outsource production, a decision that will affect 110 workers.
The telecom giant, whose Canadian headquarters are located at 600 March Rd., announced the decision internally several weeks ago.
A spokesperson said the decision is in line with the overall industry trend towards outsourcing.
"We have initiated a process to outsource all remaining Ottawa-based manufacturing operations," said Amy McLeod. "We're currently looking to select a vendor, and that process will take until the end of the year."
It's unclear how the 110 local employees will be affected, but McLeod said the human resources department will attempt to "place them where opportunities exist."
Alcatel's latest numbers indicate it employs approximately 75,000 people worldwide, a figure that's expected to fall to 60,000 by the end of the year. In Canada, the firm employs 2,000 people, half of the number that was employed during the technology boom three years ago.
McLeod said there will still be people working locally in R&D, administration, sales and marketing, procurement, test engineering, planning, inventory and project management.
The 140,000-square-foot manufacturing plant at 349 Terry Fox Dr., as well as 96,000 square feet of office space will be put up for sublease on Jan. 1. Prior to that date, Alcatel will consolidate all of its workers at the March Road facility.
In the company's second quarter results announced last June, it was reported that 60 local R&D staff were cut as part of an aggressive restructuring effort aimed at cutting costs. A company official stated that while the environment is still hostile, it's expected revenues will remain stable in the third quarter. Alcatel will report its third quarter results on Oct. 30.
Shaun McEwen, the chief financial officer for BreconRidge Manufacturing Solutions Corporation, said his company would be interested in the opportunity to manufacture Alcatel's product. However, McEwen believes the company would probably be predisposed to go with a multinational firm that already does some if its manufacturing, like Celestica.
"I do believe the majority of their outsourcing is already done on a global basis ... but we do a reasonable amount of work for them," McEwen said.
BreconRidge is an electronics manufacturing firm which recently took over the lease for Nortel Networks' vacant manufacturing plant on Palladium Drive.
The 240,000-square-foot Alcatel complex will drive Kanata's vacancy rate up even further. In addition to this large chunk of space, that of bankrupt Ceyba will soon go on the market, which measures 100,000 square feet.
