News in brief: Newport, Electroglas and Praxair
Newport Corporation announces cost reduction plans
Newport, a supplier of automated assembly and test systems and high-precision instruments, has announced a cost reduction program and a reorganization of its business units geared toward achieving profitability during the current period of weak demand in the fiber-optic communications and semiconductor equipment markets.
Newport has reorganized its two operating divisions. The former Fiber Optics and Photonics Division (FPD) has been reorganized into the Advanced Packaging and Automation Systems Division (APAS), which will cover all automation equipment technology developed and sold into all end-markets. The Industrial and Scientific Technologies Division (ISTD) will focus on instruments and subsystems for optical, opto-mechanical, vibration isolation and motion control technologies.
Several facilities will be consolidated and between 225 and 275 jobs will be lost, resulting in annualized savings of between $12.0 million and $14.0 million. The planned actions include significant downsizing of the operations at the former FPD division headquarters in Southern California and the facility in San Luis Obispo, CA and the consolidation of the former Design Technology facility in Billerica, MA into the MRSI facility, also in Billerica. The company also intends to divest its facility in Plymouth, MN, which manufactures high-precision motion stages.
"While we still believe strongly in the long-term prospects in the fiber-optic industry, we currently do not see a return to growth for us in this market until at least 2004," said Robert Deuster, president and CEO. "Due to the ongoing downturn, our FPD is currently running at a substantial loss."
Deuster added, "Although orders from our semiconductor capital equipment customers have remained strong throughout the last six months, we are increasingly concerned about uncertainty in the marketplace related to the timing of the recovery cycle."
Electroglas trims US operations
Electroglas, a supplier of wafer probers, inspection systems and process management software, has implemented cuts to its San Jose, California operations, reducing its overall headcount by 130. The company says the cuts are being partially offset by the addition of 45 employees at the company’s new manufacturing facility in Singapore. As the Singapore operations grow, a further reduction of headcount in San Jose will be made.
"The product cost savings that we expect from this move are between 10-20%, which will allow us to compete aggressively in the wafer prober business," said Curt Wozniak, Electroglas CEO and chairman.
"In spite of these difficult reductions, we continue to focus on developing new technology to allow us to take advantage of the next expansion cycle in the semiconductor industry," added Wozniak. "Projections are that 2003 will be a growth year and we want to be prepared to take advantage of that expansion."
Praxair wins supplier award from NEC
Praxair Electronics, a division of Praxair, Inc., was chosen by NEC Electronics Inc. in fiscal 2001 as its outstanding supplier to the company’s semiconductor manufacturing plant in Roseville, California. The award recognizes suppliers based on their on-time delivery, pricing, product quality and service.
