Scala moving to where the customers are
I read with interest that Scala will be closing next year. I understand the company made a lot of antenna radio equipment. I'm a little unclear, however, who bought Scala's equipment and where the products went.
— Harry J., via email
Much of what Scala produced for German-based Kathrein Inc., was used by cellular and wireless communications firms.
With two-thirds of the U.S. population located east of the Mississippi River, most of company's customers were there too, Ron Zielke, Kathrein Inc.'s Scala Division vice president for finance told us.
"Our customers use our products in their cell towers to make sure they have the right coverage," Zielke said.
One reason the company is shuttering its Medford plant is the preponderance of its components are sold to customers on the East Coast and in the Southeast.
"For the same reason companies like Motorcycle Superstore and Harry & David put distribution centers in Ohio or Kentucky, we put a warehouse in Richmond, Va., in 2010," Zielke said. "From a competitive standpoint, it made more sense to put stuff there. For a while, there were products made in Europe and then brought to the U.S. It didn't make sense to send them to Medford and then back to the East."
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