Siemens outsources handset production to Flextronics - Company Business and Marketing - Brief Article

Telecomworldwire, August 4, 2000

TELECOMWORLDWIRE-4 August 2000-Siemens outsources handset production to Flextronics (C)1994-2000 M2 COMMUNICATIONS LTD http://www.m2.com

Flextronics International Ltd is to produce mobile phones for Siemens Information and Mobile Communications Group.

Under a new outsourcing agreement Singapore-based Flextronics will manufacture 33m handsets for Siemens by the end of 2003. In addition Siemens will be increasing its own production capacity at its facilities in Kamp-Lintfort, Bocholt and Leipzig, Germany and Shanghai, China.

Rudi Lamprecht, President of Siemens Information and Communication Mobile, said that the company took the decision to outsource part of its production so that it could 'react more quickly to market conditions and get our products to market with greater speed', as well as being able to lower the amount of capital invested in production.

Lamprecht also noted, 'We are continually sold out of mobile phones, and this agreement with Flextronics allows us to satisfy the enormous demand.'

Financial terms of the contract were not disclosed.

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