Electronics Production | May 09, 2006

Flextronics and Nortel complete transfer

Flextronics and Nortel have completed the transfer of the manufacturing operations and related assets including product integration, testing, repair and logistics operations of Nortel's Systems House in Calgary to Flextronics.
Approximately 650 employees in Calgary will transfer to Flextronics as part of the final phase of the previously announced agreement.

"Today marks a significant event in our business relationship with Nortel, as we have now completed the transfer of Nortel's remaining major optical, wireless and enterprise manufacturing operations and related supply chain activities, which should generate in excess of US$2 billion of revenue annually for Flextronics. This deal brings long-term strategic value for Flextronics and creates the broadest capability of any EMS company in the telecom market," said Mike McNamara, Flextronics' Chief Executive Officer.

"The significant increase of complex, multi-technology network solutions including carrier-grade products that we will provide to Nortel solidifies Flextronics as the leader in the infrastructure market and significantly enhances our competitive advantage for large-scale, low-cost manufacturing of very complex products," said Michael Clarke, president of Flextronics' Infrastructure segment.

"Our goal from the beginning was to create an industry-leading supply chain," said Joel Hackney, senior vice president, Global Operations and Quality, Nortel. "Working with Flextronics, our customers can expect superior value through delivery agility, global reach, cost competitiveness, excellent quality, and skilled people."

"This initiative was unprecedented in our industry in terms of size and scope," Hackney said. "We have transferred essentially all of our remaining major manufacturing activities to a world-class electronics manufacturing services provider, leaving Nortel to focus on making business simple for its customers through development and integration of world-class communications and networking solutions."


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