Nordic Business Report-October 9, 2006-Teleca AB to transfer R&D operations to Russia
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The Swedish IT consulting company Teleca AB announced on Monday (9 October) a comprehensive plan to restructure its R&D operations for improving competitiveness and strengthening its cost structure.
The company will also implement measures to improve the performance of its Teleca Systems unit.
Teleca said that it plans to gradually transfer a significant part of its R&D operations to Russia, where it acquired the mobile phone developer Telma earlier this year.
The various measures will affect some 220 employees in Western Europe, including 170 persons within Teleca Mobile in Sweden.
The restructuring is expected to cost some SEK76m, in addition to which Teleca will make a write-down of SEK67m related to capitalised development costs. In return the restructuring will reduce annual costs by SEK112m per year, with full effect from July 2007.
One Swedish krona (SEK) is worth approximately 0.07 British pounds (GBP).
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