Elcoteq starts manufacturing in Brazil

Elcoteq has established in Brazil a new wholly-owned subsidiary, Elcoteq da Amazònia Ltda. Production is expected to commence during the fourth quarter this year. Elcoteq will initially operate in a rented space of 1,500 square meters. Elcoteq's Monterrey, Mexico manufacturing site will serve as the "sister site" to support the initial ramp up of products. Elcoteq believes that a manufacturing presence in the emerging Latin American market is essential for supporting its present and potential customer base particularly in the rapid growth areas of mobile phone and consumer electronics products. The focus on Brazil, the largest Latin American market, is motivated also by local requirements for being competitive in the region and being close to the rapidly growing handset market. "Elcoteq has been studying various entry strategies for Brazil since 2000 and has had numerous discussions with both existing and potential customers to provide manufacturing services in Manaus," said Doug Brenner, president of Elcoteq Americas. "With growing product demand, we believe that now is the right time to position Elcoteq in Latin America for profitable growth and meet communications technology customers' requirements and expand our global footprint. As the second largest EMS provider of mobile phones in the world, it makes sense for us to be in Brazil, the fastest growing Latin American market." Elcoteq has earlier this year also announced its expansion plans for both Russia and India.