Adtran opens new Terafactory in Germany to address supply chain security

Rhea-AI Summary

Adtran's new Terafactory in Meiningen, Germany aims to fortify supply chain resilience and create local job opportunities. The state-of-the-art facility prioritizes production autonomy, carbon reduction, and automation, reducing dependency on overseas suppliers and stabilizing delivery of networking solutions. The Terafactory will strengthen Europe's position in optical transport technology and contribute to regional innovation.

Positive

• The new Terafactory enhances production and logistics, reducing dependency on third parties and increasing resilience to supply chain pressures.
• The facility generates a significant portion of its power, making operations more energy efficient and reducing the carbon footprint.
• The Terafactory strengthens Europe's position in optical transport technology and fosters regional innovation.

Negative

• None.

News summary:

• Growing threats to global logistics require urgent action to ensure reliable manufacturing and consistent delivery of networking solutions
• Adtran’s Meiningen-based Terafactory prioritizes production autonomy, carbon reduction and automation for enhanced efficiency
• With significant backing from the state government of Thuringia, the new Terafactory aims to generate local job opportunities

MEININGEN, Germany--(BUSINESS WIRE)-- Adtran today announced the opening of its new Terafactory in Meiningen, Germany, fortifying supply chain resilience and accelerating regional technological advancements. The new state-of-the-art facility brings production back to Central Europe, boosting the company’s robustness against global logistics shocks and promising to create new local jobs. The Terafactory also streamlines workflows and reduces resource consumption by harnessing advanced automation technologies. The move towards supply chain autonomy for Adtran’s core European market echoes a similar strategy in the US, where the company has recently expanded its manufacturing facility in Huntsville, Alabama.

Adtran’s Terafactory will strengthen Europe’s position in the development of optical transport technology. (Photo: Business Wire)

“Our new Terafactory helps us mitigate against supply chain challenges like those we experienced during the Covid-19 pandemic. By enhancing the production and logistics side of our business, we’re not just reducing our dependency on third parties but also putting us in control of our own destiny. This strategic move makes us more responsive and resilient to shifting supply chain pressures,” said Christoph Glingener, CTO of Adtran. “Our new Terafactory generates a significant portion of the power it needs, making day-to-day operations more energy efficient. And by bringing the production of our world-leading optical transport technology back to Germany, we can more easily ensure precision and quality. What’s more, it will strengthen Europe’s position in optical transport technology, fostering regional innovation and setting new benchmarks for the industry worldwide.”

The new Terafactory reduces Adtran’s dependence on overseas suppliers and helps stabilize the delivery of its networking solutions to customers. As part of the BMBF-sponsored 6G-Terafactory project, Adtran will deploy an Open-RAN based private mobile network across the campus, enabling automated processes, making the production of hardware, such as the company’s flagship FSP 3000 open optical transport platform, more efficient. Quality control is also simplified, as this can now be conducted by experts at the Meiningen site prior to distribution. And with its photovoltaic solar power system, Adtran is further reducing its carbon footprint as it moves towards energy self-sufficiency throughout the Terafactory. This significant initiative has been bolstered by a substantial investment from the Thuringian government.

“Recent events highlight the fragility of global supply chains. Adtran has proactively taken steps to insulate itself against future shocks while also championing sustainable practices that contribute directly to the local economy and community. This not only brings value to our region but also creates tangible opportunities right here in Thuringia. That’s why we’re proud to support Adtran in the creation of its new production hub,” commented Bodo Ramelow, Minister-President of Thuringia. “Adtran’s Terafactory represents German industry at its best. This state-of-the-art facility sends a clear message to others who may be scaling back operations in response to global pressures. In an increasingly uncertain world, we must be confident and ambitious in our collective capacity to invest, innovate and grow our way towards a brighter, more prosperous future.”

About Adtran

ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the largest shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE. Find more at Adtran, LinkedIn and X.

Published by

ADTRAN Holdings, Inc.

www.adtran.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109026479/en/

For media

Gareth Spence

+44 1904 699 358

public.relations@adtran.com

For investors

Steven Williams

+49 89 890 665 918

investor@adtran.com

Source: ADTRAN Holdings, Inc.

FAQ

What is the purpose of Adtran's new Terafactory in Meiningen, Germany?

The purpose is to fortify supply chain resilience, create local job opportunities, and prioritize production autonomy, carbon reduction, and automation.

How does the Terafactory contribute to reducing dependency on overseas suppliers?

The Terafactory reduces dependency on overseas suppliers by bringing production back to Central Europe and streamlining workflows with advanced automation technologies.

What impact does the Terafactory have on Adtran's delivery of networking solutions?

The Terafactory stabilizes the delivery of Adtran's networking solutions to customers by reducing dependency on overseas suppliers and streamlining production processes.

How does the Terafactory strengthen Europe's position in optical transport technology?

The Terafactory strengthens Europe's position in optical transport technology by bringing the production of world-leading optical transport technology back to Germany and fostering regional innovation.

What support has Adtran received for the Terafactory?

Adtran has received substantial investment and support from the Thuringian government for the creation of its new production hub.