Elcoteq Network Corporation signs outsourcing agreement with Thomson

Nordic Business Report, Dec 20, 2004

NORDIC BUSINESS REPORT-20 December 2004-Elcoteq Network Corporation signs outsourcing agreement with Thomson(C)1994-2004 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish electronics manufacturer Elcoteq Network Corporation said on Monday (20 December) that it had reached an outsourcing agreement with the US satellite and terrestrial set-top box products provider Thomson.

The deal includes the acquisition of Thomson's manufacturing operation in Juarez, Mexico, and manufacturing cooperation in the set-top box business, according to the company.

Under the long-term manufacturing agreement Elcoteq would become a preferred manufacturing partner to Thomson for the manufacture of set-top box products and produce Thomson's set-top boxes in Juarez.

The transaction is scheduled for closing on 31 December 2004. The total consideration to be paid by Elcoteq would amount to some USD33m.

Elcoteq expects the deal to boost the company's sales by some USD300m during 2005 and by USD800m to USD1,000m during 2005-2007.

One US dollar (USD) is worth approximately 0.55 British pounds (GBP).

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