In an effort to cut costs, Artesyn Technologies (headquartered in Florida/USA) will close its fab (staff 400) in Tatabanya/Hungary, and EMS company Celestica will take over manufacturing in its site in Oradea/Romania. As Artesyn’s Joseph O’Donnell explains, the gradually decreasing currency value and increasing costs in Hungary led to the closure. “When the factory opened in 2001, the labor cost was $1 an hour. Now, it’s $6 an hour. With relocating factory services to Romania, we can go back to a labor cost of $1 an hour and raise our profitability. Furthermore, Celestica is ideal because they have a larger purchasing power and can open up sourcing options in different geographic locations”. The savings in 2006 are estimated to be $6m. Artesyn provides power supply and communication products for cellular phone sites and computer servers in North America, Europe and Asia. The company employs some 6,200 people in two factories in Wisconsin and Minnesota and another plant in China.
EPP EUROPE 403
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