Swedish telecoms equipment maker Ericsson said on Monday it would close down a plant making radio base station modules in the Swedish city of Nynashamn, laying off 463 people. The closure of the factory, which makes base station components for second and third generation networks, is a new move, not included in the company's previously announced efficiency measures, spokesman Ola Rembe told Reuters.

"The rationale behind the closure is the amount of work that goes into the production is smaller and smaller so we need fewer production sites," Rembe said.

Ericsson shares rose 0.5 percent on the news to 19.9 Swedish crowns at 1455 GMT.

Copyright Reuters, 2005