Nokia out-sources to SCI...................................
nokia.com
Nokia expands its cooperation with SCI Systems, Inc.
(April 24, 1998) - Nokia, following its strategy for continued growth, has signed agreements for global contract manufacturing with U.S.-based SCI Systems, Inc., the largest of the global contract manufacturers. Building on this partnership, Nokia continues to focus on its core competence areas within mobile communications, fixed telecommunications, data communications, as well as the evolving multimedia technologies.
Nokia is continuously seeking to complement its own technology and market know-how with strategic partnerships, including outsourcing, in cooperation with the industry's best. Cooperation with SCI, which has more than 20 manufacturing locations, complements Nokia's own worldwide local production chain.
Expanding its previous cooperation with SCI, Nokia has also agreed to outsource its remaining multimedia network terminal production in Motala, Sweden. In line with the agreement, approximately 450 people will join the staff of SCI, who will purchase the related assets, while approximately 170 employees will continue in R&D, product marketing, sales and administrative tasks in Nokia Multimedia Network Terminals in Sweden.
Nokia Multimedia Network Terminals will continue to focus its resources on competitive product concept design and distribution concepts, including satellite, fixed cable and terrestrial distribution, application software development and marketing. Nokia will also establish a new multimedia related software competence center in Linköping, Sweden.
In Finland, Nokia Telecommunications has agreed with SCI to outsource production for certain fixed and radio access products. To facilitate strong cooperation, as well as fast and smooth starting of SCI's local operations, the agreement includes the transfer of one manufacturing site, Johdinkuja, Oulu, and its related assets to SCI. All employees of the site, approximately 300 people, will join the staff of SCI.
Nokia Telecommunications manufactures infrastructure and systems for fixed and mobile networks in its production facilities in Finland, the UK, the U.S. and China. At the same time, Nokia Telecommunications will be able to utilize both the manufacturing capacity of the SCI Johdinkuja site and that of other SCI manufacturing locations worldwide.
The agreements between Nokia and SCI Systems, Inc. is expected to become effective in May, 1998.
Headquartered in Huntsville, Alabama, SCI Systems, Inc. is a diversified electronics manufacturer whose products and systems are supplied to a variety of aerospace, commercial and industrial customers. SCI is the world's largest provider of electronics manufacturing services. Its over 23,000 employees presently operate twenty-five facilities in eleven countries.
Headquartered in Finland, Nokia is a broad-scope telecommunications company supplying mobile phones, mobile and fixed telecommunications networks, data communications solutions, multimedia terminals and computer monitors. With sales in 130 countries, net sales totaled FIM 52.6 billion ($9.8 billion) in 1997. Nokia, listed on NYSE (NOK.A), employs more than 38,000 people worldwide.
Further information:
Nokia Corporate Communications
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