Solectron's Singapore Unit Gets Asyst Technologies Deal
Monday March 17, 3:45 am ET
SINGAPORE (Dow Jones)--U.S.-based Asyst Technologies, Inc. (NasdaqNM:ASYT - News) said Monday it is outsourcing virtually all its production to a Singapore unit of contract manufacturer Solectron Corp. (NYSE:SLR - News).
Shinei International, a Solectron unit, will make semiconductor manufacturing equipment for Asyst at a new 16,000 square feet clean room situated in western Singapore and opened Monday.
Solectron and Asyst signed an agreement last September to make Solectron the sole electromechanical manufacturer for Asyst. The plant, which cost the Solectron group roughly US$2-3 million, was built to cater for the deal.
Asyst said Monday the decision to transfer its U.S. production to Singapore through the outsourcing agreement would help it improve efficiency. Asyst's production from overseas locations will be shifted here quickly, it added.
Fred Tiso, senior vice president for Asyst, said by April 70% of the company's worldwide revenue would come from the Singapore operations, jumping to 95% by the end of May, leaving only small pockets of production in the U.S.
Asyst said it expects to register more than US$200 million in worldwide sales for the year ended March 31.
The Nasdaq-listed company made a net loss of US$40.9 million in the third quarter ended Dec. 31, on sales of US$75.6 million.
-By Sai Man, Dow Jones Newswires, 65 6415 4155; sai.man@dowjones.com
-Edited by Andrea Thomas |
