SALEM, New Hampshire, October 3, 2000 - Cisco Systems, Inc., the worldwide leader in networking for the Internet, today unveiled its optical manufacturing strategy at the grand opening of its New England Manufacturing Center in Salem, New Hampshire. Optical networking is one of the innovative Cisco technologies that is revolutionizing what can people can do with the Internet. The explosion in Internet demand has accelerated the need for optical systems to relieve the need for bandwidth. Cisco's optical networking technology is creating a new road map for the Internet, moving more information more efficiently and more cost effectively than ever. Cisco's three-phase manufacturing strategy includes a worldwide recruitment effort (2500 employees within the next 3-5 years), which is currently underway; capital and interior improvements of over $100 million dollars; establishment and implementation of a "portable photonics manufacturing process" to help Cisco's strategic partners quickly adopt optical manufacturing processes and produce optical systems based on Cisco's requirements. Cisco executives, joined by New Hampshire's Governor Jeanne Shaheen officially opened the doors of its 674,000 square foot manufacturing facility today at a dedication ceremony that marked the next phase of Cisco's plans.
Cisco has traditionally been recognized as a leader in "virtual manufacturing" with an unmatched capability to scale its production through external manufacturers to meet market demand. With this new portable photonics manufacturing process, Cisco will be able to do the same with optical systems. By developing in-house optical manufacturing expertise and unifying corporate assets under one roof, Cisco will be able to reduce delivery cycle of products and stay ahead of market demand.
"The tremendous growth in demand for optical solutions has created the need for this most recent expansion in manufacturing", said Carl Redfield, senior vice president of manufacturing, Cisco Systems. "Cisco has been a pioneer in developing new world manufacturing processes. We will continue to lead in manufacturing by creating in-house expertise for optical systems manufacturing and working closely with customers and partners to meet market demand."
"Cisco is a well-known leader in the Internet world. Its decision to manufacture the next generation of Internet products in New Hampshire is a clear indication of the strength of our economy and of Cisco's recognition of the technology talent in New Hampshire. I am pleased to help dedicate this state-of-the-art facility and look forward to working with Cisco in the future," said Governor Jeanne Shaheen said.
The New England Manufacturing Center will be located within the town limits of Salem, New Hampshire approximately 40 miles northwest of Boston. Cisco's new manufacturing site is part of the company's plans for expansion and substantial growth in New England and is in addition to the existing New England Development Center in Massachusetts, which is currently under construction. Cisco also recently announced expansion plans for its optical systems division in Richardson, Texas, known as "Telecom Corridor".
New England Manufacturing Center
The new manufacturing center will be utilized for test and assembly, and distribution of Cisco products globally. Products such as next generation optics-based routers and networking solutions will be built in the new facility. These high-end optical products are used for high capacity movement of information, including data, voice, and video. Up to 2,500 new jobs will be created within the next five years to support the new manufacturing center. New jobs available will include, optical manufacturing technologists, component engineers, technicians, multiple levels of management, and production managers. Cisco's business is considered "clean industry," primarily providing high skill, high wage engineering and computer science jobs. Specific services have not yet been determined for the new facility. Existing Cisco campuses include on-site dining, ATM, health and fitness facilities, company store and other personal services and amenities. Cisco expects to provide a similar array of personal services on the new site for its employees.
Location
The new Cisco manufacturing facility is comprised of 674,000 square feet of open office and manufacturing space. The facility is located on 110 acres of land at 9 Northeastern Boulevard, Salem, New Hampshire, adjacent to Exit 2, off of Route Interstate 93. Interior improvements will be performed to bring this facility to up to par with Cisco's state-of-the-art manufacturing standards.
Cisco in New England
Cisco in New England currently has several primary locations: Chelmsford, Lowell and Lexington Massachusetts. Currently, the 2500-person employee base represents Cisco's Service Provider Line of Business, and up to 20 other business organizations, including the Internet Communications Software Group. There have been eleven New England based acquisitions since 1994, in the total amount of $9.9 billion dollars. Cisco's recruitment efforts in New England have been substantial in the areas of software engineering, application consultants, hardware engineering and marketing.
Cisco Systems began in 1984 and today has $19 billion in annual sales and a market capitalization of over $435 billion. Cisco Systems employs approximately 36,000 employees worldwide. Cisco has a significant presence in strategic technology centers in San Jose, California, North Carolina's Research Triangle Park, Texas and Virginia in the United States.
