An already beleaguered Mitec Telecom Inc. announced on Wednesday the closure of its Lostwithiel, U.K.-based manufacturing facility and the chopping of 35 employees as a result.
Mitec, a provider of wireless networking products for the telecommunications industry, said the move remains part of the company’s overall strategy to re-structure its global operations. Its goods will now be supplied from its Montreal-based facility, while its European efforts will be concentrated in Dunstable, U.K. as the centre for system sales and support for its customers.
As the telecommunications industry continues its spending freeze, equipment suppliers like Nortel Networks and Mitec have continued to downsize their operations in an attempt to stay afloat. Mitec’s woes began last September when it announced sales had dropped 35 per cent from the previous year.
Months later, the news would continue to turn sour. In November, the company said it would eliminate 150 jobs worldwide as it tried to weather the nasty IT conditions, but it was able to save about 70 positions via job-sharing. Only a month later, it was able to re-structure $5 million in debt financing under the strict condition that the company also secure an equivalent amount in equity financing.
It was only back in 2001 when the company appeared to be heading on the upswing with the acquisition of Com Dev International’s wireless division. The deal was worth $23 million.
With its headquarters in Montreal, the company also has offices in the United States, Sweden, the United Kingdom, China and Thailand.
The company is online at www.mitectelecom.com.
