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Electronics Production | March 17, 2009

Elcoteq’s Juarez facility to win more FTV brand OEMs as customers

Elcoteq's Juarez facility in Mexico will open up possibilities to speed up Home Communications’ business development to win more FTV brand OEMs as customers.
Even though the general economic outlook is muted, consumer demand for FTVs is still expected to grow due to the rapid decline in the prices of larger panel sizes as well as rising new market areas such as Latin America.

Elcoteq will develop Juarez further as a multi-customer operation serving primarily its FTV and STB customers. Expanding the Juarez plant customer portfolio will also help stepping up competitiveness further. Juarez operation will have also a significant role in supporting Elcoteq’s new business development programs in other geographies, too.

One of the key advantages of Elcoteq’s service network is the consistency of its plants. This makes it easy to copy and implement best practices and processes from one plant to another. It also enables rapid production ramp up and continuous cost reductions while leveraging experience across company sites.

As reported earlier Elcoteq purchased Philips’ FTV assembly operations in Juarez, Mexico, in September 2008. The Juarez deal included a long-term cooperation agreement with Philips. Under the agreement, Elcoteq will provide manufacturing services to Philips’ Latin American FTV business and its hospitality business in the Americas. The deal also included a long-term cooperation agreement with a new customer Funai Electric Co. Ltd. Elcoteq will provide full box build manufacturing services solutions to Funai’s FTV business in North America.

Thanks to the Juarez acquisition, Home Communications’ service offering has expanded to the complete final assembly of FTVs. The acquisition provided Elcoteq with capabilities to offer final assembly service solutions for FTVs, including related engineering and new product introduction (NPI), supply chain management, sourcing and repair service solutions.

Market research companies‘ estimates for EMS market growth in 2009 vary greatly. In general, it can be said that due to the global economic situation, EMS market growth estimates have also become more cautious. However, growth in the Home Communications business area is expected to remain strong.

Elcoteq’s Home Communications business area handles home communications products, such as set-top boxes (STB) and flat screen TVs (FTV). Its customers are globally operating original equipment manufacturers like Philips, Funai and Thomson. In the future, FTV production is expected to show vigorous growth, but also tight competition.

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