CommScope Inc., a global leader in infrastructure solutions for communications networks, plans to relocate cable production from its Newton, N.C., facility later this year. The consolidation of wireless network cable production into a larger existing manufacturing facility in Joliet, Ill., is expected to begin in September and be completed by year-end, resulting in the loss of approximately 85 hourly and salaried jobs in Newton.
"These actions are difficult yet unavoidable, and we regret the impact on our employees," said Randy Crenshaw, executive vice president and chief supply officer, CommScope. "We are in the midst of a comprehensive review of our global manufacturing footprint as we work to improve facility utilization, minimize cost and protect the profitability of our business in response to reduced – and more volatile – customer spending patterns."
CommScope's Newton facility also houses another approximately 45 workers in non-manufacturing roles who are unaffected by the production relocation. They will remain at Newton, pending a decision about the facilities' long-term future.
"We remain committed to global competitiveness and outstanding service to our customers," Crenshaw said. "As we transition production from Newton to Joliet, we intend to ensure that customers continue receiving the superior service that they have come to expect from CommScope."
CommScope expects cash restructuring costs of between $3 million and $4 million related to this move and annualized savings of approximately the same amount upon completion.