Downer shuts Communications Technology Group

Downer Engineering has closed its Communications Technology Group (CTG) division, after a failed attempt to sell Huawei products direct to end users.

CTG was created by Downer Engineering, (a division of ASX-listed Downer EDI), in late July 2005 to distribute Huawei's data communication and DSL equipment and technical services to resellers and end users.

Downer Engineering originally signed on to distribute the Chinese company's products in November 2004.

Wayne Nolan, CEO of Downer Engineering said the division's plan to sell Huawei products direct to end users faltered. "Taking Huawei products direct to end users just didn’t work. That part of the business didn’t fit in with our organisation,” he said.

Nolan said two of the three CTG employees have left the organisation. The one remaining staff member has been appointed to work with Downer’s resellers, selling Huawei products, he said.

Local integrator NSC was a CTG reseller partner. Craig Neil, MD at NSC said the integrator would now buy direct from Huawei.

"We were appointed in July 2005. We are going to be okay because now we deal with Huawei direct," he said.

Downer Engineering will now distribute Huawei products to the reseller channel only.