Solectron Announces Partnership With Leading Cell Phone Provider in China
businesswire.com
Business Editors/High-Tech Writers
MILPITAS, Calif.--(BUSINESS WIRE)--April 28, 2003--Solectron Corporation (NYSE:SLR), a leading provider of electronics manufacturing and supply-chain management services, announced today that it has signed a definitive agreement to form a joint venture with Guangzhou Soutec (Group) Technology Co., Ltd. (Soutec), a leading cell phone provider in China. The joint venture, Soutectron Technology (Guangzhou) Co. Ltd. (Soutectron), will be the exclusive manufacturer for cell phones designed and marketed by Soutec, which had revenues of $200 million in 2002.
Solectron is majority owner of the joint venture.
The joint venture will lease a building from Soutec on that company's campus in Guangzhou, China. Approximately 850 employees will be hired. Operations are to begin following the Chinese government's approval of the joint venture that is expected by the end of May.
"We are pleased to form this joint venture with one of the leading cell phone providers in China," said Chester Lin, executive vice president and president, Solectron Asia/Pacific. "This strategic partnership will enable us to gain a competitive edge in capturing China's fast growing multi-billion dollar market and gives the expertise needed to tailor to the different needs of Chinese cell phone providers."
"We are very excited to work with Solectron, a company well known for its high-quality services and strong manufacturing capabilities, as our manufacturing partner," said David Chen, president of Soutec. "Working with Solectron will enable us to quickly expand our production capabilities to meet the rapidly growing market demand in China and provide our customers with top quality products."
About Soutec
Soutec is the largest cell phone designer, manufacturer and marketing company in Southern China. The company focuses on next generation cell phones, such as CDMA, 3G and GSM. The company was founded in 1999 by six major high-tech companies owned by China Central, Guangdong provincial and Guangzhou city governments.
About Solectron
Solectron (www.solectron.com) provides a full range of global manufacturing and supply-chain management services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, high-tech product manufacturing, and product warranty and end-of-life support.
Safe Harbor
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the anticipated approval of the joint venture by the Chinese government and the anticipated commencement of operations thereunder, the anticipated benefits of the agreement, the scope of services to be provided, the manufacturing facilities to be utilized and estimates of current and future demand for cell phones and cell phone manufacturing, in each case based on current expectations that involve a number of risks and uncertainties which may materially impact the establishment and future success of the joint venture. These risks and uncertainties, which the joint venture faces, also include component availability, changes in technology, competition, risk of price fluctuation, changes in economic conditions of the various markets the companies serve, risks associated with international sales and operations, end-user demand, market risk, segment risk and intellectual property rights enforcement. Other potential risks that could cause actual events to differ materially are included in filings with the Securities and Exchange Commission, including Forms 8-K, 10-K, 10-Q, S-3 and S-4 for Solectron Corporation. Solectron disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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CONTACT: Solectron Corporation
Analyst/Investor contacts:
Perry Hayes, 408/956-7543 (U.S.)
perryhayes@ca.slr.com
Tonya Chin, 408/956-6537 (U.S.)
tonyachin@ca.slr.com
Media contact:
Birgit Johnston, 408/956-6995 (U.S.)
birgitjohnston@ca.slr.com
KEYWORD: CALIFORNIA CHINA INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE HARDWARE MARKETING
AGREEMENTS
SOURCE: Solectron Corporation |
