Artesyn Consolidates European Manufacturing
Artesyn Technologies Inc. (Boca Raton, FL) announced cost-reduction initiatives, including plans to close its Kindberg, Austria, manufacturing facility. The transfer of related production to the company's facilities in Hungary and China is expected to be complete by March 2003.
The Kindberg facility is primarily engaged in manufacturing power supplies for the telecommunications and wireless markets. During the closure period, Artesyn will work closely with customers to transfer production to lower-cost manufacturing locations. The company also initiated workforce reductions at its Youghal, Ireland; Madison, WI; and Redwood Falls, MN, manufacturing facilities. Approximately 380 employees will be affected by these actions.
"Continually improving efficiency and ongoing reductions to our global cost structure are key components to Artesyn's long-term strategy," commented Artesyn President and CEO Joseph O'Donnell. "The slowdown in the telecom and wireless markets has resulted in low utilization rates across our worldwide manufacturing facilities and a window of opportunity to consolidate production into our low-cost facilities in Hungary and China. When fully implemented in 2003, we expect this and other actions taken in the quarter to generate cost savings of over $10.0 million annually."