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Electronics Production | January 27, 2006

Suppliers in Eastern Europe obtains strength

Eastern Europe will eventually become a viable source for electronic components and other production materials, but it may take awhile.
A lot of EMS providers and OEM already have manufacturing in Eastern and Central Europe,
Purchasing.com reports.

Joe Carson chief procurement officer for Lucent Technologies said” We source locally for items that would be prohibitively expensive to ship”. The company Lucent also needs local sources of supply for software and professional service to support its equipment.

Companies have to import many components, but a supply base is developing around low-tech items. Analysts think the supply base in Eastern Europe will take a long time to develop because there are sourcing alternatives in Western Europe.

Jeffrey Wu analyst with researcher iSuppli said, "There are many mature and highly sophisticated component suppliers in western Europe who are in close proximity to EMS providers in Eastern Europe."

Vice president of global sourcing for IBM, Ian Crawford said” For an indigenous supply base to develop, it has to be cost competitive, produce the same quality as global suppliers and in the volumes that OEMs and EMS companies need”.

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