Flextronics and Nortel
announced that they have completed the transfer of the
manufacturing operations and related assets including product integration,
testing, repair and logistics operations of Nortel’s Systems House in Calgary
to Flextronics. Approximately 650 employees in Calgary will transfer to
Flextronics as part of the final phase of the previously announced agreement.
“Today marks a significant event in our business relationship with
Nortel, as we have now completed the transfer of Nortel’s remaining major
optical, wireless and enterprise manufacturing operations and related supply
chain activities, which should generate in excess of US$2 billion of revenue
annually for Flextronics. This deal brings long-term strategic value for
Flextronics and creates the broadest capability of any EMS company in the
telecom market,” said Mike McNamara, Flextronics’ chief executive officer.
“The significant increase of complex, multi-technology network solutions
including carrier-grade products that we will provide to Nortel solidifies
Flextronics as the leader in the infrastructure market and significantly
enhances our competitive advantage for large-scale, low-cost manufacturing of
very complex products,” said Michael Clarke, president of Flextronics’
Infrastructure segment.
“Our goal from the beginning was to create an industry-leading supply
chain,” said Joel Hackney, senior vice president, Global Operations and
Quality, Nortel. “Working with Flextronics, our customers can expect superior
value through delivery agility, global reach, cost competitiveness, excellent
quality, and skilled people.”
“This initiative was unprecedented in our industry in terms of size and
scope,” Hackney said. “We have transferred essentially all of our remaining
major manufacturing activities to a world-class electronics manufacturing
services provider, leaving Nortel to focus on making business simple for its
customers through development and integration of world-class communications
and networking solutions.”
