Tellabs to outsource North American manufacturing

Reuters ^ | 08-01-03

[Brian S]

NEW YORK, Aug 1 (Reuters) -

Telecommunications equipment maker Tellabs Inc. (nasdaq: TLAB - news - people), struggling to return to profitability, on Friday said it would turn over manufacturing of North American products to contract manufacturer Sanmina-SCI Corp. (nasdaq: TLAB - news - people) and cut 325 jobs in the process.

Tellabs, which has logged five consecutive quarters of losses, said that starting in the third quarter, it will begin recording charges of between $90 million and $110 million for the move.

[Brian S]

More from Dow Jones...



NAPERVILLE, Ill. -(Dow Jones)- Tellabs Inc. (TLAB) will outsource manufacturing of its North American products to Sanmina-SCI Corp. (SANM), resulting in 325 job cuts at Tellabs.

The company plans to begin recording charges of about $90 million to $110 million in connection with the outsourcing in the third quarter.

In a press release Friday, Tellabs said the transition will begin immediately, and it expects manufacturing operations at its Bolingbrook, Ill. faciltiy to cease by year-end.

Tellabs will move the remaining employees from the Bolingbrook facility to its Naperville headquarters, and sell the Bolingbrook building.

On July 22, Tellabs Chief Executive Michael J. said he "was very positive regarding Tellabs' North American operations."

In a separate release, Sanmina-SCI said it will fold all printed circuit-board assembly and repair services for Tellabs North American products into its facilities.

Tellabs said it now plans to focus on "taking care of customers and developing the products that telecom service providers need," and it expects slight benefits from lower costs this year.

Electronics-contract manufacturer Sanmina-SCI said it has worked with Tellabs for 10 years, providing the original equipment manufacturer with circuit boards, backplanes and enclosures for their telephony-distribution, digital cross connect, metro-optical and transport-switching product lines.

Company Web sites: http://www.tellabs.com and http://www.sanmina-sci.com

[samuel_adams_us]

Okay, who wants to start the list? so far we no longer buy HP, Telabs, etc. I think we need a list, a website, etc.

[steve50]

Okay, who wants to start the list? so far we no longer buy HP, Telabs, etc. I think we need a list, a website, etc

Problem is we keep buying the BS of politicans that losing the manufacturing base is no big deal. Perhaps we should boycott the politicans that aren't concerned about the job losses.

[samuel_adams_us]

That is a good idea also, we will boycott all politicians not willing to step up to the plate. We need to start collecting email addresses and addresses, phone numbers and anything else we can to notify all americans. We also need a name, the "Sons of Freedom" might be a good one.

[boycott]

Below is one of my post on a recent thread:

Both parties SCREWED the USA!

While passing NAFTA and GATT, they told us that we should focus on the higher paying high tech jobs. It was okay to let all our textile and industrial jobs go to other countries because we had all these great paying high tech jobs.

What's happened since the passing of NAFTA and GATT?

(1) Our textile and industrial jobs have gone or are leaving. Did you hear that great big sucking sound of our jobs leaving?

(2) The NASDQ is about 25% of where it used to be. Most of the over hyped high-tech money was in the NASDQ. There's not much money in high tech anymore. High tech is heading the way of the calculator. Calculators just don't cost much anymore. There's no money in them just like there won't be much in tech jobs in the future. In addition, these few jobs are being outsourced to people in other countries.

Both parties have screwed the USA! I am afraid that one day we'll have our citizens moving to Mexico, India and China to find work.

The American people are going to have to make both parties accountable for the way they have screwed this nation.

[harpseal]

ping

on or off let me know

[steve50]

Sons of Freedom seems to be taken already, homepage seems to portray it as a Christian Constitutionalist type site.

Sounds like a good organization, though I suspect we'd start to part on some issues.

[samuel_adams_us]

Well this has nothing to do with religion so we need something else. Any Ideas?

[steve50]

The American people are going to have to make both parties accountable for the way they have screwed this nation

Never happen. Of the half of us that vote, they got us about evenly split blaming the other party.

We'll keep fighting each other while they hold our coats (and go thru the pockets).

[samuel_adams_us]

BTW, if you want to join up, send an email to me here or at samuel_adams_us2000@yahoo.com. Anyone who wants to help spread the word.

[steve50]

Well this has nothing to do with religion so we need something else. Any Ideas?

None, I think it's got to run it's course. The people have been convinced they want democracy, until it collapses of it's own weight they'll go on believing in Santa Claus.

The problem is in what's planned as the solution to our collapse, last time our economy crashed we got the New Deal to quiet the sheep. Global version of the same this time around?

[discostu]

this might not be a ship overseas. Sanmia is all over the place, here's their North American sites
http://www.sanmina-sci.com/Info/locations/glob_loc.jsp?region=North+America

[samuel_adams_us]

I am not willing to wait, the old virginia blood in my body is boiling. You joining up or waiting around to see what happens? It's only letters and opinions, nothing more.

[GOP_1900AD]

Watch for at least PCBAs if not level 5 system build to go to Sanmina-SCI PRC! No joke!

[GOP_1900AD]

Sun. Made in the PRC: Ultra10, SunBlade100. Most constituent assemblies made in the PRC: SunBlade150, SunFireV100, SunFireV120, NetraV120, SunBladeB1000/1600. Also, many power supplies, option cards, etc made in the PRC.

[tophat9000]

I read that as: Taliban to outsource North American manufacturing

[Chi-townChief]

I had an interview with Tellabs-Bolingbrook in early 2002. When I later inquired about my chances, I was told that they "decided to go in a different direction." In retrospect, I guess it's a good thing I didn't get the job.

[y2k_free_radical]

soon there will be no more people with money for us in the service industry to service

[Chi-townChief]

"The American people are going to have to make both parties accountable for the way they have screwed this nation."

More importantly, the American people are going to have to make their fellow Americans accountable for the way they have screwed this nation - and I don't see that happening.