Fab consolidation completed

SEPT. 16–OXFORDSHIRE, England–Bookham Technology plc, a provider of optical components, modules and subsystems for fiber optic communication networks, has completed the consolidation of its two main wafer fab facilities, following the acquisition of the Nortel Networks Optical Components businesses (NNOC).

The decision was made to consolidate the Ottawa wafer fab facility, acquired through the acquisition, into the company’s Caswell, UK, facility, a move which was targeted for completion in the fourth quarter 2003.

The consolidation of the Ottawa facility was a large element of the company’s cost reduction plans, with the full impact originally planned to start appearing in the first quarter 2004. By completing this consolidation, the company should start seeing the full impact of the closure in the fourth quarter 2003.

As part of this restructuring, the Ottawa fab has completed a build of chip inventory, which was essential to de-risk the transition and insure continuity of supply for Bookham’s customers.

“We are extremely pleased with the rapid integration of the two facilities,” says Liam Nagle, chief operating officer. “The Caswell facility has been upgraded, we have moved and installed equipment from Ottawa, designs and manufacturing processes have been transferred and the fab is now functional, with initial product qualifications of chips built at the Caswell facility proceeding to plan.”

Giorgio Anania, president and chief executive, said the move is the last and most critical component in a cost-reduction and operational refocusing plan.

“It moves us to a significantly lower spend rate in the fourth quarter 2003,” Anania said. “The employees in both the transfer-out and the transfer-in teams have also come through excellently for us, beating production targets, timing and budgets.”


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