Ericsson ramps up digitalization and production at European factories

Ericsson’s factory in Estonia is nearing the completion of a major SEK 500 million investment, while the company has established production with a partner in Poland – both part of its global supply strategy of securing fast and agile deliveries through customer proximity. The factories directly benefit the European market as well as supporting Ericsson’s global ecosystem.

Ericsson’s 25,000sq m factory in Tallinn, Estonia, has undergone a two-year digitalization transformation to become a 5G manufacturing facility utilizing Ericsson’s own 5G technology.

The Tallinn transformation is in line with Ericsson’s recent announcement of the establishment of a smart factory in the US, and the impending completion of the company’s transformation of its factory in Nanjing, China.

Next-generation smart manufacturing will be fast-tracked through a modular and flexible production setup at the Ericsson factories. This means working with automation (radio assembly automation, Automated Guided Vehicles (AGV), automated radio testing, Surface Mount Assembly (SMA), automated lifts and automated dispensing equipment) as well as facilitating new Manufacturing Execution System (MES) and test execution systems.

Testpool installation is ongoing at the Ericsson Tallinn factory, while the final assembly automation line will be installed by end of 2019. The site is already experiencing significant benefits from digitalization, such as the ability to ramp up production of Ericsson’s 5G radio and RAN Compute portfolio during September.

By working close to customers through European, Asian and American operations, Ericsson’s supply chain strategy enables the company to secure fast and agile deliveries and meet customer requirements.

Customer proximity is particularly relevant as 5G rollout gathers momentum for service providers around the world, opening up new opportunities in enhanced mobile broadband, the Internet of Things and Industry 4.0 opportunities.

Supporting European customers’ 5G rollout is also a focus of establishing a production with partner located in Tczew, northern Poland.

The first 5G products, part of Ericsson Radio System, started rolling off the assembly line at the facility during the second quarter of 2019. The factory will be fully operational during the first quarter of 2020.

Fredrik Jejdling, Executive Vice President and Head of Business Area Networks, Ericsson, says: “As 5G is taking off in Europe, we’re ensuring that our customers benefit from the latest technology as soon as they are ready. Our European supply digitalization investments, alongside our investments in America and Asia, is further proof that we continue to work close to our customers in the most efficient, technology-advanced, and needs-based way.”

Ericsson has more than 35,000 employees – of which 14,000 are R&D engineers - at 21 locations Europe.