Manufacturing Industry
A foot in the door.(Brief Article)
Industry Week, November, 2000 by JUSKO, JILL
Analysts who follow electronics contract manufacturing say last month's deal between Tokyo's Sony Corp. and Solectron Corp. may be the wedge in the door to greater numbers of outsourcing deals involving Japanese OEMs. Milpitas, Calif.-based Solectron, the world's largest provider of contract-manufacturing services, purchased two Sony manufacturing facilities--one each in Japan and Taiwan--representing about 490,000 sq ft of manufacturing space.
Under a long-term arrangement Solectron will provide electronics manufacturing services to Sony from those facilities, which produce high-end consumer products. No financial details were released by either company, but investment banking firm Deutsche Bank Alex. Brown estimated the deal could represent more than $500...
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