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Electronics Production | April 06, 2010

Symmetricom-transfer to Sanmina-SCI affects 150 staff

Symmetricom has entered into an agreement to transfer product fabrication processes and related activities from Symmetricom's Aguadilla, Puerto Rico facility to Sanmina-SCI facilities. The transfer is expected to be complete within one year.

Symmetricom's Puerto Rico-based operations, which include assembly, testing, repair and logistics, will be transitioned to Sanmina-SCI manufacturing sites. The EMS-provider currently produces Symmetricom's printed circuit board assemblies (PCBAs). Symmetricom expects to continue to manufacture highly specialized core atomic time technology and selected military products in its other facilities. Costs related to the transition are expected to total approximately USD 15 million over the next year, including USD 13.5 million in cash. Symmetricom will begin incurring these costs immediately. The company plans to build approximately USD 4.0 million in buffer inventory to support the transition. Once the transition is completed, Symmetricom expects to save approximately USD 6.0 million per year and bring the benefit of a more flexible and efficient supply chain to its customers worldwide. "Taking this action will enable us to focus on the cost-effective development of key products and technologies that generate, distribute, and apply precise time," said Dave Cộté, president and CEO of Symmetricom. "We initiated our outsourcing strategy in 2008 by transferring manufacturing of PCBAs to Sanmina-SCI, and we expect this transition to further enhance our supply chain and competitive position." Under the agreement, Symmetricom will not transfer its physical facility or the manufacturing assets located in Puerto Rico to Sanmina-SCI. Symmetricom intends to shut down the Puerto Rico manufacturing facility at the end of the transfer period. Approximately 150 employees will be affected.
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