new production center:
Alcatel GSM factory in Illkirch, France, to be converted into an
Alcatel Optronics production center
In parallel the company will concentrate its European GSM production on one single site
Paris, April 26, 2001 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced its
intention to convert its GSM Mobile Terminals manufacturing plant in Illkirch, France, where
830 employees are located, into a factory for optical interface and amplifier subsystems
for Alcatel Optronics (Paris: CGO ; Nasdaq ALAO ) activities.
This announcement is in line with the strong demand for optical sub-systems, generating
needs for additional capacity. On the other hand, the lower demand for GSM mobile
terminals allows Alcatel to concentrate its manufacturing capacities on one single site.
To manage the growing demand for optical components caused by the explosion of the
Internet traffic, Alcatel Optronics will have increased its production capacities by a factor
of four over 18 months (July 2000 to December 2001). The company is particularly
focusing on increasing the production of integrated optical subsystems. Alcatel Optronics
has retained the Illkirch site because these product lines require expertise in electronics
and product assembly similar to the technical know-how developed through Alcatel's GSM
phones production.
The transfer of the current Illkirch teams to the Alcatel Optronics activity will be in line with
the ramp up of the optical subsystems needs. In parallel, the GSM production will be moved
to the other European GSM manufacturing plant of Alcatel in Laval, France. An extensive
training program for the Illkirch employees will be launched in the coming weeks. By this
summer the first optical modules manufactured in Illkirch will be delivered to customers. By
December 2001 there will be 260 employees totally dedicated to optical manufacturing. By
June 2002 this number will increase to 570 employees, with the objective to complete this
process by year end 2002.
For Alcatel Optronics this is an opportunity to lower its cost of investments compared with
a grass roots facility. The conversion of Alcatel's existing Illkirch site will also provide a
better and more competitive time to market solution to serve the explosive demand in optical
subsystems, and is in line with Alcatel Optronics' site specialization strategy.
For Alcatel's mobile phones business this represents an excellent opportunity to adapt its
production capacity to the flattening growth of the GSM mobile phone market in Europe. It
also consolidates the future of the Laval site, that becomes the sole European
manufacturing facility of mobile phones to support Alcatel's needs. To further strengthen
the Laval operations a strategic partnership will be proposed with a leading contract
manufacturer, which will be separately announced today.
This project is being presented today to the workers councils of the concerned entities.
About Alcatel Optronics
Alcatel Optronics designs, manufactures and markets integrated optical components,
modules and sub-systems used in terrestrial and submarine optical telecommunications
networks. With state-of-the-art production sites in France and North America, Alcatel
Optronics is a frontline supplier of laser sources, detectors, amplifiers and high-speed
optical interface modules, as well as key passive components such as wavelength
multiplexing (AWG) and network filters (FBG). Alcatel Optronics has extensive experience
in the integration of active and passive components and sub-systems. It is part of Alcatel's
Optics group, the world leader in the area of terrestrial and submarine transmission
systems, fiber optics and optical components.
About Alcatel
Alcatel builds next generation networks, delivering integrated end-to-end voice and data
networking solutions to established and new carriers, as well as enterprises and
consumers worldwide. With 130,000 employees and sales of EURO 31 billion in 2000,
Alcatel operates in more than 130 countries.
Contact press@www.alcatel.com |
