The newly expanded Tellabs facility in Shannon is to play a significant role in the US company's attempt to become a global provider to the telecommunications industry. Following a $30 million (€27.5 million) expansion of the Irish operation, Tellabs has committed to increase its workforce here from 325 to 525 over the next 12 months. Most of the new jobs will be in the area of research and development, making Tellabs one of the biggest R&D employers in Ireland.
Attending the official opening of the new facility in Limerick yesterday, Mr Michael Birck, chief executive officer of Tellabs, told The Irish Times he envisaged further expansion at the Limerick facility. "Good engineering talent is a scarce commodity anywhere, but we haven't had major problems finding the people we need in Shannon. We would consider expanding elsewhere here as long as we can find the help we need."
The bulk of Tellabs' Shannon operation centres around research and development (R&D) activities, and it played a vital role in developing its latest product, the AN2100 Gateway Exchange system. It is the springboard to propel Tellabs into the fiercely competitive global telecommunications switching field.
The potential of this market was highlighted recently when Tellabs closed a $160 million contract to deliver its new product to Sprint, one of the largest carriers of long distance telephony in the US.
Tellabs is on target to generate revenues of $2 billion this year. According to Mr Birck, it should return revenues of $6 billion within three years if the company sustains its annual growth rate of 30 per cent.
"Tellabs is now a meaningful and significant player in the telecommunications world. This new product is not only a major product for the future, but the harbinger of things to come as we address far more sophisticated products in a far more sophisticated area of the industry."
Mr Birck added that the opening of the new facility coincided with the tenth anniversary of Tellabs' acquisition of the former Delta Communications. Then it marked Tellabs' first venture into R&D and marketing outside North America, and its entry into multinational product development.
The new facility will act as headquarters for Tellabs Adaptive Network Solutions Division, which integrates marketing, R&D, manufacturing and customer service functions.
Mr Patrick Shanahan, vice president and managing director of Tellabs' operations in Ireland, said the latest expansion was also an exercise in heightening Tellabs' attractiveness as a work location.
"We operate in a very competitive market, so the expansion of the plant helps raise our profile. The quality of work means we are doing design for world class products and, while continuing to get good staff is a concern, we know we can compete with the best of them."
