FLEX buys another Ericsson facility:
Flextronics International Signs Letter of Intent to Acquire Ericsson's Visby, Sweden Facility
Acquisition will Strengthen Flextronics' Position as Supplier To the Telecommunications Industry
April 19, 1999 09:15 AM
SAN JOSE, Calif., April 19 /PRNewswire/ -- Flextronics International Ltd. FLEX , a full-service supplier of innovative design, engineering and electronics manufacturing solutions, today announced the signing of a Letter of Intent to purchase the Ericsson's Visby, Sweden operations. Ericsson's Visby facility focuses on manufacturing for the mobile systems infrastructure, primarily radio base stations. Under the terms of the agreement, Flextronics will acquire the entire facility, including equipment and materials, and has agreed to offer employment to all 900 employees currently employed at the Visby plant. The transfer is planned to be effective July 1, 1999.
Ericsson's goal is to become a leading supplier to the telecommunications industry. Today's focus on IP-related applications and services demands new competencies and a radical change in product supply flow. High volume manufacturing and production of telecommunications products, not related to its core competencies, have been subject to outsourcing for some years.
"We are extremely pleased to have reached this agreement," said Bjorn Bostrom, Senior Vice President for Ericsson's Supply and IT. "This is an important step in the process of change and the reduction of personnel that was announced earlier this year. Our employees will be well served to join Flextronics, an excellent employer and a top quality performer, which was previously proven when Flextronics acquired our Karlskrona, Sweden operation and 800 employees in 1997."
"The addition of Ericsson's Visby plant to our operations will strengthen our ability to service telecommunications clients," said Ronny Nilsson, President of Flextronics' Western European Operations. "We have a track record from previous deals with Ericsson and this acquisition is further proof of our commitment to expand in this industry and to remain the leading supplier of telecom products to customers," said Nilsson.
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