Flextronics Buying Elcoteq's Russia Ops (Updated) PDF Print E-mail
Written by Mike Buetow   
Tuesday, 26 February 2008 04:44
HELSINKI -- Elcoteq will sell its Russian subsidiary ZAO Elcoteq to Flextronics. The deal includes Elcoteq's St Petersburg plant, and is expected to close in 60 days. Financial terms were not specifically noted, although Elcoteq said it would book a one-time gain of about $4.5 million in its second quarter.

Under terms of the deal, Flextronics will get the plant site -- reportedly 48,000 sq. ft. -- and staff. Elcoteq will retain the customer accounts. As of January, the plant employed 550 workers.

Elcoteq had previously announced it would seek a buyer for the unit as the company has consistently lost money on its Russian operations. The EMS firm is trying to reduce its annual costs by $104 million to $119 million as it seeks to rebound from the loss of certain Nokia business.

"The divestment of the Russian subsidiary plays a central role in improving Elcoteq's profitability and balance sheet in 2008," said Jouni Hartikainen, President and CEO of Elcoteq SE, in a statement.
Last Updated on Wednesday, 27 February 2008 05:07
 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...