Motorola Enters $1 Billion Cell-Phone Manufacturing Accord With Celestica
By Chris Dolmetsch
Schaumburg, Illinois, Dec. 6 (Bloomberg) -- Motorola Inc., the No. 2 maker of cell phones, entered a manufacturing agreement valued at more than $1 billion over three years with electronics- equipment manufacturer Celestica Inc., affecting 2,870 jobs.
As part of the agreement, Celestica will buy two plants for $70 million. Celestica will offer positions to about 1,200 workers, and 350 employees will be eligible to transfer to other Motorola plants.
Under the accord, Celestica will make some cellular phone handsets, messaging devices, two-way radio products and accessories for Schaumburg, Illinois-based Motorola, the company said. The Motorola plants Celestica will buy are in Ireland and Iowa.
The agreement is the second such accord for Motorola this year, Motorola said. It's part of a long-term effort to improve its supply chain and consolidate manufacturing to boost its financial performance.
Motorola rose 63 cents to close at $19 yesterday. Toronto- based Celestica shares rose $3.44 to $59.63. |
