Marconi Outsources Printed Circuit Board Manufacturing

ByPeter Strozniak In a strategic effort to focus on its core business functions of designing, marketing, and selling telecommunications power products throughout the world, Marconi Communications of Pittsburgh, a subsidiary of UK-based Marconi PLC, will outsource all of its printed circuit board (PCB) manufacturing operations. Over the next 12 months, Marconi's printed circuit board production equipment and assemblies will be transferred from a company plant in Lorain, Ohio, to APSCO International, a Perry, Ohio-based electronics manufacturing company, owned by a private-equity investment firm in Cleveland. Financial details were not released. PCBs are used in Marconi's power products and systems that help run computer, video, telephone, and wireless communications networks. "This will clearly help us concentrate on redeploying our resources in Lorain to focus on developing and bringing to market the new solutions that our growing customer list requires in meeting the explosive needs of the telecommunications landscape," says Dave Smith, vice president and general manager for Marconi's power business. Marconi's Lorain facility employs 1,350 people. No layoffs will occur as a result of this move, says John Nisky, director of commercial services for Marconi's power business. Employees who are involved in PCB production will be reassigned. To meet the expected production demand for Marconi's PCBs, APSCO International plans to expand its Perry facility by 40,000 sq ft, and add more than 100 employees. Marconi PLC posted sales last year of $12.9 billion and employs 84,000 worldwide.