Massive Nortel Investment Will Create U.K. Jobs

Nortel Networks
announced this week that it will be investing $400 million to
triple its global production capacity for optical Internet
systems.

The investment will create 5000 full-time positions,
of which 1800 will be in the U.K.

Nortel (NT) plans to expand its existing campuses in Paignton,
England, and Monkstown, Northern Ireland, while also building
new facilities in Canada and increasing its supply chain and
customer service capabilities in the United States.

“We’re moving at Web speed to meet growing customer demand
for our market-leading Optical Internet capabilities,” said
John Roth, president and CEO, Nortel Networks.

“The expansion of our global optical production
capacity will provide the scale needed to ensure we maintain
our first mover advantage and extend our leadership in
optical networking and the high performance Internet well
into the new millennium. This isn’t just about meeting
customer demand, it is also about enhancing a source of
long-term competitive advantage.”

Nortel has taken a lead in the development of dense
wavelength division multiplexing (DWDM) 6.4 terabit systems
which require precise production of hundreds of specific
wavelengths of lasers. A new plant in Ottawa will
fabricate the necessary components.

The overall market for optical networking and components
is growing at 50 per cent annually and is expected to
reach $35 billion by 2001. It is being driven by the
explosive demand for bandwidth by corporate and
consumer Internet users.

Nortel said that its U.K. investment will total $105 million,
divided between Paignton and Monkstown.