Alcatel takes back some production from Flextronics, Sanmina & Celestica

William Stein, analyst at Credit Suisse is cited in a barrons report in saying that Alcatel Lucent is pulling back most parts of the outsourced production from EMS-providers such as Flextronics, Sanmina-SCI and Celestica to produce back in-house. Alcatel is reported to transfer the production to its own plant -the Alcatel Shanghai Bell facility in China. The analyst predicts that the loss of these orders will cut revenue and profit for all three EMS-providers during 2009.