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Electronics Production | May 23, 2008

Flextronics Russian plant bid rejected by FAS

Flextronics plans to acquire Elcoteq’s St. Petersburg plant to produce LCD televisions for the Russian market has been rejected by Russian FAS.
The Russian Antimonopoly Service (FAS) has not approved a plan by Singapore-based EMS-provider Flextronics to build a production plant, due to a lack of information about the investor. The company was to invest around $50 million reports the St. Petersburg Times. In a ruling dated May 5, the FAS refused an application by Flextronics’ Austrian subsidiary, Flextronics International, to buy 100% of Elcoteq's plant in St.Petersburg. Flextronics is said to have failed to present data about its beneficiaries. The FAS was unable to ascertain the facts, despite talks with the company, the ruling said.

Finnish EMS-provider Elcoteq decided to sell its St. Petersburg factory at the end of 2007. The facility was to be sold to Flextronics to Flextronics at the end of February. The company wanted to produce liquid crystal display (LCD) televisions for the Russian market, reports St.Petersburg times. It is often difficult for foreign companies to get an understanding of regulations and to hand in all necessary documents for approval in Russia, said Dmitry Ivanov, a lawyer at Duvernoix Legal.

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