Nortel Networks plans to sell a part of its operation near Belfast, as part of a global restructure, the Canadian technology company has said. The jobs of the 100 workers in its electro-mechanical facility at Monkstown, Co Antrim, were safe, as all would be employed by C-MAC, the buyer, the firm said.
Nortel said it was selling all of its electro-mechanical business to the Montreal-based C-MAC, but added that there would be "a period of consultation" with trade unions before the final agreement was signed. The company said it intended to sign a supply agreement with C-MAC.
Nortel employs about 1,300 people at the Monkstown plant, and a further 900 in Galway. Apart from the 100 workers who will change companies, the company said the move would not affect employment.
Globally, the firm has entered into agreements with five manufacturing services companies to divest or outsource certain operations. There would be some 500 redundancies, it added.
"The transactions announced mark another milestone in the company's three-year global operations strategy announced in January, a strategy designed to focus the company on its highest value-added activities and create the industry's most agile, flexible and responsive provider of unified networks solutions," Nortel said.
The value of the outsourcing deals is expected to total more than $1 billion (€928 million) in the first year alone. Nortel expects to see gross proceeds of about $400 million (€371 million) from the sales, and annual savings of $250 million to $300 million once the reorganisation is complete.
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