Belden has announced it will eliminate data cabling networking manufacturing activities at its Pointe-Claire, Que. facility in April, a move that it says is necessary because of production over capaci...
January 1, 2007
Belden has announced it will eliminate data cabling networking manufacturing activities at its Pointe-Claire, Que. facility in April, a move that it says is necessary because of production over capacity worldwide. The closing, will affect some 200 employees.
The company will continue its research and development, product development and marketing activities in Pointe-Claire as well as its worldwide centre of excellence for enterprise networking technology.
The company currently has an estimated 100 employees in the suburban Montreal location, however, Dee Johnson, the firm’s director of investor relations, said it is “conceivable” that the number of people employed at the centre could grow.
St. Louis, Mo.-based Belden will close a second plant in mid-2007 located in Wheeling, Ill., a facility that manufacturers lead and hook-up wire as well as multiconductor cable configurations.
Belden president and CEO John Stroup, the subject this issue of a cabling q&a, which starts on p. 18, called the closings a difficult, if necessary, step in the implementation of “our regional manufacturing strategy.”
“The expected ongoing US$14 million annual efficiencies associated with these actions are an integral part of maintaining and improving our global competitiveness …”
When asked by CNS if he accepted the position knowing that major changes would be necessary, Stroup, who joined Belden in the fall of 2005, said the company at the time was not running anywhere near its peak level of performance.
“That included things like having a manufacturing footprint that was really not optimized for where we want to go (and) a company that was terribly under-represented in emerging markets,” he said.
Johnson, meanwhile, said the changes are not so much about reducing capacity, but consolidating it in order to reduce our fixed cost load.
“For a company of our size to have 24 manufacturing facilities around the world does not feel like the right balance,” she said.
“John has people working on a global manufacturing strategy that would change that to a smaller number of locations. If we can reduce the number of location, we are leveraging ourselves better.”