24 September 1997
By Tom Gillespie
One hundred new jobs are to be created at Volex Group Plc in Castlebar following a major corporate business deal which they have agreed with Ericsson Cables AB. It will result in a total of 380 people being employed at the plant over the next one and a half years.
The expansion will mean that the company will require additional accommodation to facilitate the growth and Volex general manager, Michael Newell is currently working closely with the IDA in thus regard.
Under the terms of the agreement Volex, who have been in Castlebar for ten years, will become the principal global supplier of cable assembly to Ericsson business area Infocom Systems. It also includes a supply agreement for cables from Ericsson Cables to Volex. Both companies will jointly undertake development of new and improved types of cable assemblies.
"The announcement is in line with Ericsson Infocom Systems concentration on its core business, which means focusing on solutions, which require special telecom and datacom competence", stated Hans Ahlinder, Director, Sourcing Ericsson business area Infocom Systems.
Janne Sjoden, president of Ericsson Cables added: "This agreement provides the basis for long-term technical co-operation with Volex in cable assembly products, which is a rapidly changing and developing field. It will enable Ericsson Cables to ensure long-term availability to Ericsson and other customers of up-to-date and technically suitable cable assembly products."
Volex Chief executive, Mr. Dom Molloy stated: "We view this agreement as a continuance of the Volex Group strategy for supporting major multinational companies in the datacom and telecom industries, with cable assemblies and interconnect product. We continue to strengthen our core competencies world-wide and consider this agreement as a strategic development in our support of the fast growing telecommunications market."
Negotiations have also commenced for Volex Group to acquire Ericsson's cable assemblies manufacturing operations in Croatia as well as similar operations in Malaysia, with a total of around 280 employees who will be offered employment within the continuing operations.
Ericsson Infocom Systems has another 300 persons employed within cable assembly in a large number of countries world-wide. To what extent they will be affected by this agreement will now be investigated jointly by Ericsson Infocom Systems and the Volex Group.
The final agreement between both companies is expected to be signed in early December, when a further announcement will be made.
Volex Group Plc, is a leading independent manufacturer of cable assemblies, power cords and specialist harnesses with 21 facilities located throughout Europe, North America and the Asia/Pacific region.
Providing products and services to many of the major data/com and telecom producers world-wide, Volex is a recognised leader in the interconnect industry.
Ericsson's 90,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson a world-leading supplier in telecommunications.
