NEC restructures Australian operations

No job losses

NEC Business Solutions Ltd. will no longer operate as a stand-alone business and will be integrated into NEC Australia Pty. Ltd from April 1, 2007.

The integration of NEC's Australian operations is aimed at increased synergy between the two businesses and enhanced business collaboration in the key areas of IT and networks.

The decision is in response to the growth of broadband, IP telephony and wireless communications. The goal is to integrate voice and data solutions and improve cost structures within NEC.

NEC Australia managing director Toshiharu Iwasa said the company will continue to be headquartered in Melbourne and combined annual revenues total more than $A582 million.

Iwasa said the restructure will allow NEC to be a more effective supplier and increase efficiencies.

"Integration of our operations will strenghten our product and solutions portfolio immensely, putting us in a unique position to offer our diverse customer base integrated end-to-end solutions, reducing integration and installation timeframes considerably," he said.

"It will also give NEC Australia a market-leading position in providing total communications solutions through our broadband network, display solutions, broadband access products and IP telephony and wireless capability."

Iwasa said the company will be actively exploring new business opportunities among gated communities and business parks.

He said verticals the company will target include hospitality, retail, SME, education, banking and finance, health and government.

NEC Australia will continue to maintain its ICT research and development facility in Australia.

"We are confident that our customers will experience a seamless transition," Iwasa said.

"The move will in fact improve response times, helping our customers maintain their own competitive edge."

There will be no local job losses as a result of the restructure, a local spokeswoman confirmed.

Earlier this year merged its three North American units into a single company to better compete in the telecommunications and networking market.

The three companies, NEC America Inc., NEC Solutions (America) Inc. and NEC USA Inc., became NEC Corp. of America on July 1, 2006.

Because NEC's business in North America is primarily with telecommunications carriers and enterprise network providers that are demanding more one-stop shopping for systems, it made sense to merge the three companies, a Tokyo spokeswoman said.