Ericsson closing its $1.3-billion facility in Vaudreuil-Dorion
Borje Ekholm stands before the press after he was presented as the new CEO for the Swedish telecom company Ericsson during a press conference at their headquarters in Kista, Stockholm, Sweden, Wednesday Oct. 26, 2016. (Janerik Henriksson/TT via AP)
Ericsson is closing its $1.3-billion data facility in Vaudreuil-Dorion less than a year after it opened.
The Swedish telecommunications giant made the decision after poor third-quarter results.
According to reports, the closure will affect about 50 jobs in the area.
The 215,000-square-foot facility opened in December 2016, when Ericsson chose the area due to massive tax breaks from the Quebec government.
The Parti Quebecois gave the company $30 million in subsidies, including a ten-year tax holiday and preferential hydro rates.
Reports say Ericsson will be required to respect its financial obligations to the province.
The facility contains massive data boxes meant to bring 20,000 engineers worldwide together virtually.
It is expected to close sometime next year.
Vaudreuil-Dorion Mayor Guy Pilon said he's hopeful another company will move into the facility.