Alcatel Optronics expects 50% drop in Q3 revenue
"We want to reach as soon as possible a streamlined business model, with our Nozay (France) manufacturing facility focusing on active components, our Livingston (Scotland) plant on passives, and both units combining forces in a joint effort towards hybrids," said Jean-Christophe Giroux, CEO of Alcatel Optronics. "From 1550 staff today, we expect to reach approximately 1000 before year end, and ultimately below 500 by the end of 2003. This decrease in fixed costs should results in an estimated Euro 40 Million quarterly sales break-even point by end 2003".
The company’s strategic refocus plan includes reducing the Nozay site to approximately 300 employees, through a combination of industrial outsourcing, pooling of resources with partners, spin-offs and individual redeployments. In parallel, at the site in Lannion, France, the process of an industrial re-conversion to another industry segment has been launched, as announced on June 5, and could be completed within 12 months.
In the US, Alcatel Optronics intends to enter into a non-binding agreement with an industrial partner, whereby this partner would acquire the majority of the business and assets of the company s unit in Plano, Texas. The transaction is expected to close before the end of 2002.
In Canada, all fiber Bragg grating (FBG) activities will be discontinued and the R&D expertise transferred across to Livingston, where the manufacturing has already been re-localized.
At the Livingston site, all passive products (planar lightwave circuits and FBGs) will be consolidated. Operations will continue to be sized to reflect ongoing business conditions.
