PGT-Photonics, formerly Pirelli group, is shutting down

PGT Photonics (formerly Pirelli Group) is shutting down:

80 employees to be fired

Employees on strike asking for saving jobs

After only one year from the acquisition of PGT Photonics by CyOptics Inc. (24/7/08), 30 % owned by Pirelli, PGT’s closure has been announced and consequently all employees will be fired.

This is the end of a deal announced as a “strategic alliance” and that was supposed to bring additional value and growth to this group, always promoted as the centre of excellence for advanced research in Pirelli.

Pirelli is not new to this kind of business:

2008 PGT Photonics was established and sold the same year to CyOptics in change of CyOptics’ stocks. Pirelli was also injecting a large amount of cash both in CyOptics and PGT: was Pirelli paying CyOptics in order to get rid of 150 workers?
2004 Pirelli Submarine Telecom Systems was closed. PSTS was operating in the development, production and installation of submarine telecom systems.
2000 Pirelli Optical Systems was sold to Cisco Systems: in 2 years the workforce was reduced 300 to 100 employees;
2000 Pirelli’s Optical Components Division was separated from Pirelli as OTI and then sold to Corning (then sold to Avanex and now Oclaro): in just 1 year the workforce was reduced 300 to 100 employees;

Pirelli is used to always dismiss research activities using third companies after gaining money and visibility, with no interest in creating value through technological research: in this way the “P lunga” logo is safe and new money is ready for new financial “adventures”.

The RSU UGL was deeply worried since the beginning about this operation, despite the management repeatedly confirmed the intention to pursue new industrial plans that were never achieved.

Where is Pirelli? Pirelli today is still the main share holder of CyOptics and consequently of PGT Photonics; moreover PGT Photonics’ CEO is one of Pirelli’s top managers.

Today, Pirelli’s advanced research is called Pirelli Broadband Solutions and Pirelli Ambiente: who’s next?

Milan, September, the 16th 2009

RSU PGT Photonics