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© jakub krechowicz dreamstime.com Electronics Production | February 25, 2013

Where did Celestica Reynosa go?

In June 2012, EMS-provider Celestica announced that it would wind down the production for RIM (now BlackBerry). So, where does that leave Reynosa?
In their fiscal 4Q report, Celestica writes the following: "We completed our manufacturing services for RIM and the related transition activities by the end of 2012.[...] We announced that we would take restructuring actions throughout our global network to reduce our overall cost structure. [...] Our current estimate of the total restructuring charges to complete our planned actions, which we expect to complete by the end of June 2013, is between $55 million and $65 million, taking into account additional actions in response to the continued challenging demand environment."

While Celestica did not specifically mentioned layoffs in their report, one can be fairly sure that restructuring charges means just that. Taking into consideration that the Reynosa location has disappeared from the list of worldwide locations, we also assume that Mexico is part of these restructuring plans.

News coming out of Mexico indicate that some 2'000 former Celestica workers are looking for a new job. Sergio Martínez Villarreal, Secretary for Economic Development and Employment for the Municipality, has announced job initiatives for those affected by Celestica moving production elsewhere (the EMS-provider has another Mexican location in Monterrey), but fears that it is very unlikely for all of them to find adequate jobs.

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