Alcatel offloads manufacturing facilities

Sanmina-SCI Corporation, a leading electronics contract manufacturer, has announced the asset purchase of Alcatel’s manufacturing facilities in Cherbourg, France; Gunzenhausen, Germany; and Toledo, Spain. Financial terms of the transaction, which includes a multi-year supply contract, were not disclosed.

According to a statement, the transaction is expected to close by the summer of 2002. The transaction is subject to approval from various regulatory bodies in the United States and Europe, and appropriate consultation with worker councils in each of these locations.

The three European manufacturing facilities of Alcatel comprise nearly 100,000 square metres and include ISO-certified full system integration and test and order fulfilment capabilities. Approximately 1,500 employees work at these locations and will become Sanmina-SCI employees.

The Cherbourg, France facility produces a range of point-to-point microwave systems, for worldwide applications in all frequency bands from 1.5 up to 38GHz.

The Gunzenhausen, Germany facility produces high-end voice switching and data transmission systems for central office applications whilst the Spanish facility produces a full range of wireline access products which deliver Narrowband, Broadband and Next Generation services to Alcatel’s customers.

This transaction is said to be in line with Alcatel’s strategy to focus on its core competencies including R&D, product and solution design and new product introduction (NPI), as well as marketing and sales towards telecom service providers around the world.

The outsourcing of the three European factories to Sanmina-SCI will allow them to optimise factory loading and guarantee Alcatel and its customers continuity of supply of quality products.

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