IBM and Sanmina-SCI, a global electronics manufacturing service provider, have announced an agreement under which IBM will outsource a significant portion of its desktop personal computer manufacturing needs to Sanmina-SCI. Sanmina-SCI will also acquire IBM’s NetVista desktop manufacturing operations in the United States and Europe.
IBM currently manufacturers its NetVista desktop computers in Research Triangle Park (RTP), North Carolina, for customers in the United States and Canada. The product line is manufactured on IBM’s behalf in Greenock, Scotland and mainland Europe for customers in Europe, the Middle East and Africa.
IBM will continue to design and market the NetVista line of desktops and has signed a three-year, $5 billion outsourcing agreement with Sanmina-SCI to provide desktop manufacturing services for these markets.
Sanmina-SCI intends to use the existing locations in RTP and Scotland to fulfil IBM’s desktop manufacturing needs. It will acquire IBM buildings and equipment related to desktop manufacturing in RTP, and it will take over management of IBM’s existing outsourced manufacturing contract and acquire IBM manufacturing equipment in Scotland.
The agreement also includes the transfer of 900 employees in RTP and 80 employees in Scotland. All transferring employees will be offered positions with Sanmina-SCI at the same salary. Terms of the sale were not disclosed.