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INDUSTRY NOTES

Ericsson Inc. Reopens Its Anaheim Facility

November 09, 1986

Ericsson Inc. has reopened its network systems division in Anaheim and recalled about 50 workers to resume manufacturing the company's line of telephone equipment.

Jerry Ludke, manager of manufacturing operations, said Ericsson decided to abandon plans to shift its manufacturing to Mexico when anticipated savings were not realized.

In August, 1985, Ericsson closed its Anaheim plant, laid off about 200 workers and contracted with a plant in Mexico to manufacture its telecommunications equipment. However, Ludke said, the company discovered that the Mexican operations were not as inexpensive as projected.

Ludke said renewing the operations in Anaheim is considered a test. If the experiment proves successful, Ludke said, the company hopes to return the division to its former operating level at some point. He cautioned, however, that employment would grow quite slowly, totaling perhaps only 70 workers by the end of 1987.

Ericsson Inc., based in Richardson, Tex., is the U.S. subsidiary of LM Ericsson, a Swedish communications conglomerate.

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