Powertech blots Altron's copybook as tough conditi
Industrial Correspondent
ALTRON subsidiary Powertech is downsizing its cabling manufacturing activities for a second time in less than a year in response to deteriorating conditions in the telecommunications market.
Altron CE Robbie Venter is not optimistic about improved conditions this year, saying the market is in for another rough ride.
He was briefing analysts on Altron's results for the year to February, which were somewhat blotted by Powertech's performance.
Powertech said it had right-sized its copper and fibre-optic cable manufacturing function at the Aberdare Cables factory in Port Elizabeth last August in response to poor market conditions.
The market had deteriorated further since then, prompting additional staff cuts. Powertech also closed Aberdare Cables' Rosslyn plant, which employed 500 people, in 1999.
Venter said Powertech's performance was satisfactory given tough conditions. The company was particularly affected by reduced infrastructure spending by Telkom, one of its largest clients.
At operating level the group grew 23%, notwithstanding the effects of the rand's appreciation, Venter said.
May 16 2003 07:10:59:000AM Carli Lourens Business Day 1st Edition
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16 May 2003
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