Fujitsu Telecommunications Europe Limited

Fujitsu Telecommunications Europe Announces Final Decision on PCB Manufacturing Transfer

Birmingham, 30th June 2008 — Solihull-based Fujitsu Telecommunications Europe Limited (FTEL) announced today that following exhaustive consultations, a final decision has been taken to transfer its PCB (printed circuit board) manufacturing operations to sister company, Fujitsu Network Communications (FNC), in the United States. The key factor in the decision was the continuing volatility in demand for products in the global telecommunications market. The transfer is scheduled for completion by 31 December 2008.

Chief Operating Officer, Tony Oppenheim, set out the reasons behind the Board’s decision:
"This has been an extremely difficult decision, and has only been made after intensive and very constructive consultation over alternative solutions, which would have enabled the manufacturing of PCBs to remain in Solihull. I would like to acknowledge the very real effort on the part of the CWU that has gone into trying to establish a viable alternative to the transfer. I must stress that this has been a genuine consultation, involving a detailed evaluation of a highly complex set of variables. Unfortunately, the flexibility afforded by the alternatives, although worthwhile, would not have been sufficient to deal with the degree of demand volatility we have to expect going forward. We regret the additional anxiety that this extended process has caused amongst our staff, but the FTEL Board was determined to investigate each and every proposal thoroughly and with a completely open mind. The outcome was finely balanced, but the Board’s duty is to protect both the long-term interests of the business and the wider workforce as a whole. The global market requires us to be more flexible than if we were to have retained manufacturing in Solihull. However, FTEL can achieve that flexibility by leveraging the critical mass of production that already exists at FNC. This has been the chief driver behind the move.

"We had been informed by the CWU of further strike action prior to today’s announcement, but hope that with the improved redundancy terms now on offer, this can be averted. We wish to continue to work closely together with the CWU and non-unionised employee representatives to ensure as smooth a transition as possible and the best possible outcome for everyone concerned. We have identified additional new jobs in Solihull and are asking our employees and their representatives to work co-operatively with us to agree final terms."

FTEL will retain its assembly and test activities at its Solihull plant. In addition, it will create a configuration and staging function in Solihull. This will improve its ability to respond rapidly and supply ‘plug and play’ solutions tailored to individual customer requirements. The move of the manufacturing activities to FNC is now expected to result in a net loss of less than 100 jobs.

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About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3 trillion yen (US$53 billion) for the fiscal year ended March 31, 2008.
For more information, please see: www.fujitsu.com

About Fujitsu Telecommunications Europe

Fujitsu Telecommunications Europe Limited is a major supplier of Broadband Access equipment in Europe and is Fujitsu’s worldwide design location for access network solutions – including a centre of excellence for the development of Digital Subscriber Line (DSL) technology. From its base in Birmingham, West Midlands, Fujitsu designs, develops and manufactures telecommunications technology for the European market, and its technology accounts for over 5 million lines of DSL broadband in the UK alone. The company’s advanced technology has resulted in the Queen’s Award for Enterprise: Innovation 2005.
For more information, please see: uk.fujitsu.com

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