STOCKHOLM May 21 Ericsson announced
on Tuesday plans to shut its telecom cable manufacturing
facility in Sweden and would take a 500 million Swedish crown
($75 million) charge as a result.
The company said it had given notice of a reduction of 354
positions. It said the market for copper cable had declined
while fiber cable demand had grown over the last years, with
production shifting towards Asia.
"There is overproduction on the cable market in Europe,"
Tomas Qvist, head of Special Products in business unit Networks,
said in a statement. "Unfortunately, our production has not been
operating at full capacity for a long time and has struggled
($1 = 6.6607 Swedish crowns)
(Reporting by Mia Shanley)