Celestica Lands Artesyn Contract
BOCA RATON, FL -- Celestica has landed a major EMS contract with Artesyn Technologies, a maker of power conversion and embedded boards for server and storage, networking, wireless and telecommunications.
In a statement today, Artesyn said it is closing its manufacturing facility Tatabanya, Hungary, and will award European manufacturing services work to Celestica. Most of the products currently being manufactured in Hungary will be transferred to Celestica's factory in Oradea, Romania, Artesyn said.
This transition is expected to be complete by the end of 2005. The move will save Artesyn an estimated $6 million next year.
Joseph O'Donnell, president and CEO, said, "Our intent to outsource production to Celestica is primarily based on their larger purchasing power and ability to leverage economies of scale from a larger manufacturing base. Additionally, Celestica's global manufacturing structure will open up sourcing options in different geographic locations as we grow our global wireless infrastructure business. The new relationship with Celestica gives us the ability to leverage our cost structure, as well as improve gross margins and overall profitability."
