Celestica Inc.Full color plastic card printing and manufacturing services. has spent the past two years shifting the focus of its sprawling Toronto headquarters from producing electronics for computers and telecommunications to manufacturing for health care, green technology and aerospace and defence sectors.
Nearly half of the one-million-square-foot facility is devoted to the production of green-tech products including its new solar panel factory, which started production in early April and can hardly keep up with demand, said Mike Andrade, senior vice-president of emerging markets.
"Electronics are starting to insinuate themselves into all sorts of industries they previously weren't in. Everyone knows about electronics in communications and computing devices, but health care, industrial, green tech, aerospace and defence all have a lot more electronics in them so we're investing in all of them," he said at a tour of the company's home base last week.
Celestica, which spun off from IBM Corp. in 1996, makes BlackBerrys for Research in Motion Ltd., one of its biggest clients. With 35,000 employees around the world and factories in China, Malaysia, Thailand and Mexico, the company has moved much of its consumer electronic work from Toronto to those low-cost manufacturing centres. Meanwhile, the Toronto location focuses on more complex products.Choose from one of the major categories of Bedding,
Robert Young, an analyst at Canaccord Genuity in Toronto,From standard Cable Ties to advanced wire tires, said it is part of a move to shift some of its business to lower-volume but higher-margin products to complement the rest of the work it does.
"You can almost look at it as an investment portfolio manager," he said. "They'll have very low-margin business like Research in Motion's BlackBerry and then they'll offset that with very low-turn, highmargin business."
While industrial, aerospace and defence,Welcome to the official Facebook Page about Ripcurl. health care and green tech made up 12% of the company's $6.5-billion total revenue for 2010, Celestica plans to boost that to 30% within the next three years.
"I think over time, what the Street would like to see is Celestica grow into RIM -grow these other parts of the business to sort of offset RIM and gradually push margins higher," Mr. Young said.
The desire to reduce reliance on RIM is understandable. When the Waterloo, Ont.-based tech giant posted dismal firstquarter results on Thursday, sending its stock plunging more than 20% on Friday, Celestica also took a hit. The company's shares hit a two-year low, trading at $7.72 early Friday afternoon before closing at $7.91, a loss of $0.62 on the day.
The timing was also right to move into solar technology in Ontario with the passage of the Green Energy Act in May 2009, which provides incentives to use materials originating in the province.
"Without the Act initially,Use bluray burner to burn video to BD DVD on blu ray burner disc. I don't think there was the environment here to make investments," Mr. Andrade said.
The company is building solar panels for customers that sell to everyone from small farms to commercial rooftops to large-scale utilities, he said. Demand for the panels in Ontario is so high the company has none left to sell to the United States, although he does expect it to be a key market in the future.
Nearly half of the one-million-square-foot facility is devoted to the production of green-tech products including its new solar panel factory, which started production in early April and can hardly keep up with demand, said Mike Andrade, senior vice-president of emerging markets.
"Electronics are starting to insinuate themselves into all sorts of industries they previously weren't in. Everyone knows about electronics in communications and computing devices, but health care, industrial, green tech, aerospace and defence all have a lot more electronics in them so we're investing in all of them," he said at a tour of the company's home base last week.
Celestica, which spun off from IBM Corp. in 1996, makes BlackBerrys for Research in Motion Ltd., one of its biggest clients. With 35,000 employees around the world and factories in China, Malaysia, Thailand and Mexico, the company has moved much of its consumer electronic work from Toronto to those low-cost manufacturing centres. Meanwhile, the Toronto location focuses on more complex products.Choose from one of the major categories of Bedding,
Robert Young, an analyst at Canaccord Genuity in Toronto,From standard Cable Ties to advanced wire tires, said it is part of a move to shift some of its business to lower-volume but higher-margin products to complement the rest of the work it does.
"You can almost look at it as an investment portfolio manager," he said. "They'll have very low-margin business like Research in Motion's BlackBerry and then they'll offset that with very low-turn, highmargin business."
While industrial, aerospace and defence,Welcome to the official Facebook Page about Ripcurl. health care and green tech made up 12% of the company's $6.5-billion total revenue for 2010, Celestica plans to boost that to 30% within the next three years.
"I think over time, what the Street would like to see is Celestica grow into RIM -grow these other parts of the business to sort of offset RIM and gradually push margins higher," Mr. Young said.
The desire to reduce reliance on RIM is understandable. When the Waterloo, Ont.-based tech giant posted dismal firstquarter results on Thursday, sending its stock plunging more than 20% on Friday, Celestica also took a hit. The company's shares hit a two-year low, trading at $7.72 early Friday afternoon before closing at $7.91, a loss of $0.62 on the day.
The timing was also right to move into solar technology in Ontario with the passage of the Green Energy Act in May 2009, which provides incentives to use materials originating in the province.
"Without the Act initially,Use bluray burner to burn video to BD DVD on blu ray burner disc. I don't think there was the environment here to make investments," Mr. Andrade said.
The company is building solar panels for customers that sell to everyone from small farms to commercial rooftops to large-scale utilities, he said. Demand for the panels in Ontario is so high the company has none left to sell to the United States, although he does expect it to be a key market in the future.
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