TALLINN, ESTONIA -- LM Ericsson will acquire part of Elcoteq's manufacturing operations in Tallinn for EUR 30 million, pending regulator approval, the companies said today.

The deal includes about 1,200 Elcoteq employees. Production is expected to begin under the Ericsson name by Aug. 1.

The site reportedly builds radio access products for Ericsson's 2G and 3G base stations.

The announcement comes not long after Alcatel-Lucent and other major OEMs have announced plans to bring production in-house. Despite the purchase, Ericcson said that its outsourcing strategy remains intact.

Elcoteq is the world's sixth largest EMS company, but has been undergoing a long restructuring.

 

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