Flextronics and Casio Computer Company Ltd have announced a $1.5 billion contract manufacturing agreement in which Flextronics will manufacture a variety of Casio’s electronic products.
According to a statement, the agreement includes the purchase of a Casio production facility in Shah Alam, Malaysia.
In addition, Casio will sell its manufacturing operations in Aichi, Japan excluding land and buildings. The contract also includes Flextronics’ acquisition of equipment from Casio’s factory in Kluang, Johor, Malaysia.
This strategic relationship will allow Casio to leverage Flextronics’ global manufacturing infrastructure, procurement and supply chain resources, enabling Casio to provide its consumer electronic products at more competitive prices.
The alliance will also allow Flextronics to gain access to Casio’s design and production engineering capabilities. Additionally, both companies will collaborate in new product development and design activities.
The transaction is expected to close on July 31, 2002.