Tuesday, May 21, 2013

Ericsson to Close its Cables Operation in Sweden

Ericsson has begun the process of closing its telecom cables operation within business unit Networks.

The company said the market for copper cable has declined over the last few years and production has shifted towards Asia.

"It is a tough message to bring to our colleagues in the telecom cable operations in Hudiksvall and Stockholm today. The decision is based on the fact that Ericsson's production of telecom cables is small from a global perspective, and that we also have a small market share. There is overproduction on the cable market in Europe. Unfortunately, our production has not been operating at full capacity for a long time and has struggled with profitability," stated Tomas Qvist, head of Special Products in business unit Networks, and head of Human Resources for Ericsson in Sweden.

Net sales for telecom cables operations in 2012 amounted to approximately SEK 1 billion.

http://www.ericsson.com/press

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