Electronics Production |
Tyco plans to close 16 electronics plants
Tyco International plans to close 16 of its electronics manufacturing factories in Europe and The US. The company may also spin off some of its businesses.
According to Circuits Assembly, CEO Edward Breen said last week that Tyco would close 16 electronics plants within the next two years to improve profits. Tyco also mentioned it would raise prices to offset higher raw material costs. Tyco reported earlier this year that it would seek a buyer for some of its PCB plants. Also Deutsche Bank earlier speculated that Tyco would close up to 25% of its European capacity.
Electronics made up 29.4%, of Tyco's $41.5 billion in sales in fiscal 2005. Its PCB business makes up some 4% of the Electronics division's sales, Tyco told reporters at Productronica in Munich last week. Tyco International will take a restructuring charge of up to $175 million, $60 million in fiscal 2006, Circuits Assembly reports.
