Elcoteq Network Corporation, which focuses on communications electronics, is strengthening its position in Estonia by transferring the production of equipment used in communications networks to the company's plant in Tallinn. The transfer to a familiar country will ensure the company's competitiveness and profitable business operations.

Elcoteq provides globally end-to-end solutions consisting of design, NPI (New Product Introduction), manufacturing supply chain management and after-sales services. The company's business areas are Terminal Products and Communications Network Equipment.

At the end of the year Elcoteq won Tellabs International as a customer against tough international competition. As a result, the Tellab's production in Espoo of digital optical cross-connection products and broadband access systems was transferred to Elcoteq.

Now the production of the plant in question will be transferred in stages to Estonia, where Elcoteq has been operating since 1992. The transfer is expected to bring clear cost savings for both companies, according to Ilmar Petersen, Vice President, Elcoteq Europe.

"Elcoteq's objective was to find a solution that will guarantee competitive and profitable business in the long term. We ended up with Estonia after comparing several plants in different countries. There was already similar production in Estonia, so the transfer of Tellabs's production was best suited to there. Estonia is also a competitive environment for electronics production," Petersen says.

Also going well in Hungary

Of the new EU countries Elcoteq also has experience of Hungary in addition to Estonia. Mobile phone and network equipment is produced in both countries as is NPI i.e. engineering services, industrialization and productionalization.

Petersen expects greater freedom of movement for labour, goods and services from the EU enlargement. "We are well placed in these things in Estonia and Hungary. The networks function, and we are familiar with the local operating methods and cultures. We are now hoping for a smooth enlargement and continuation of a competitive operating environment."

The possibility of a major, expanding market for Elcoteq lies in Russia. The EU enlargement as such will not affect this. We've been operating in Russia since 1997 and we've got clearly defined plans to expand there because of Russia's own markets," Petersen affirms.

>> www.elcoteq.com

Elcoteq operates on three continents in 11 countries. Customers include Nokia, Aastra, Motorola, Sony-Ericsson, Philips and Sumitomo.
Photo: Elcoteq, Image Bank