Elcoteq not to sell St. Petersburg plant after all

The Flextronics deal to buy the St. Petersburg facility from Finland based Elcoteq failed do to import duties on plasma screens and modules - the components needed to assemble LCD TVs. Elcoteq will continue to work independently and is said to produce for Philips soon. The transaction for the sale of Elcoteq’s plant to Flextronics has been completely thwarted, reports kommersant. The Government of Russia has not yet signed a decree on zeroing duties on imports of components to assemble LCD TVs, a principle for Flextronics, which planned to manufacture LCD TVs there." Sergei Fiveysky, First Deputy Chairman of the Committee for Economic Development, Industrial Policy and Trade of the Government of St. Petersburg told the newspaper that “Elcoteq indeed decided not to sell its plant and continue to develop their own business in St. Petersburg”.