JDSU transferred its Ottawa manufacturing operations to Fabrinet in 2006; the deal was about manufacturing, not the first sale of the Ottawa building. Production was slated to move to JDSU facilities in Shenzhen, China, and St. Etienne, France, and to Fabrinet facilities in Thailand. Ottawa’s non-manufacturing activities were unaffected by the transfer.
What did JDSU sell to Fabrinet?
JDS Uniphase (JDSU) transferred its Ottawa manufacturing operations to Fabrinet, its contract-manufacturing partner. The agreement covered manufacturing, not every function at the Ottawa site: JDSU’s fiscal-2006 filing says non-manufacturing activities there were unaffected.
The manufacturing transfer followed a separate real-estate deal. On May 20, 2005, JDSU announced that it had agreed to sell its 912,000-square-foot Ottawa facility at 3000 Merivale Road to Minto Developments Inc. The agreement included a leaseback option of up to 18 months, or a minimum of 12 months. JDSU later reported $23.5 million in proceeds from the property sale and a $10.9 million impairment charge tied to the facility before the sale. JDSU’s May 2005 announcement described the property sale as a step in its asset-right-sizing strategy.
When did the Ottawa transition happen?
| Date | Event |
|---|---|
| May 20, 2005 | JDSU announced the pending sale of the Ottawa property to Minto Developments. |
| November 9, 2005 | JDSU said Ottawa-made products would transition to contract manufacturers or JDSU’s own non-U.S. manufacturing site. It estimated about 300 manufacturing positions would be affected, while R&D, central services and product-realization expertise would remain at the site. |
| February 15, 2006 | Fabrinet said it had announced the acquisition of JDSU’s Ottawa manufacturing operations and would wind down the location. |
| By April 1, 2006 (expected) | Contemporary industry reporting said the Fabrinet transaction was expected to complete by this date; Fabrinet would close the plant and move production to lower-cost locations. |
The April date was reported as an expectation, not confirmation of the actual closing date.
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Where did Ottawa production go?
JDSU’s fiscal-2006 filing identifies three destinations: JDSU facilities in Shenzhen, China, and St. Etienne, France, plus Fabrinet facilities in Thailand. The filing describes a redistribution of manufacturing across those sites, rather than a single replacement plant.
What happened to Ottawa employees and other functions?
JDSU estimated in its November 2005 webcast that approximately 300 manufacturing headcount would be impacted. It also said it intended to retain R&D, central services and product-realization expertise at the Ottawa site. The available statements distinguish those retained functions from manufacturing; they do not specify the eventual outcome for every individual employee.
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Why did JDSU move manufacturing?
The transfer formed part of JDSU’s cost-reduction and manufacturing-footprint consolidation program. In November 2005, the company said it planned to reduce its North American optical-manufacturing facilities from seven to two by the end of 2006. That was a plan announced at the time, not a statement of the final facility count.
Moving production to JDSU’s non-U.S. sites and Fabrinet’s Thailand facilities fit that broader consolidation. The property sale to Minto was a related asset-right-sizing step, but it was a different transaction from the transfer of manufacturing operations.
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