RealTime IT News

Sanmina-SCI to Buy 3 Alcatel Plants

Two weeks after agreeing to make IBM Corp.'s NetVista line of personal computers, Sanmina-SCI Corp. again took advantage of the feverish sell-off climate when it vowed to buy three manufacturing plants from Alcatel. .

Financial terms of the deal, in which Sanmina-SCI will purchase the assets of Alcatel facilities in Cherbourg, France; Gunzenhausen, Germany; and Toledo, Spain, were not revealed. The pact also includes a multi-year supply contract and is slated to close in summer 2002.

The three facilities comprise some 1 million square feet and include full system integration and test and order fulfillment capabilities. As with the IBM agreement, Alcatel employees at the plants will join Sanmina-SCI's staff. This constitutes 1,500 employees.

Each plant serves a different purpose and will be integrated differently. The Toledo, Spain facility makes wireline access products that deliver narrowband, broadband and next-generation services to Alcatel customers. This building will serve as Sanmina-SCI's Center for wireline access product manufacturing and test in Europe.

The Gunzenhausen, Germany building produces voice switching and data transmission systems for central office applications, and will serve Sanmina-SCI's German and other European customers. The Cherbourg, France plant produces point-to-point microwave systems, for applications in all frequency bands from 1.5 up to 38GHz.

Jure Sola, Chairman and CEO of Sanmina-SCI said: "These facilities which broaden our manufacturing capabilities, especially in final system build and test, are strategically located close to key European markets and will accelerate our international business development effort."

Simply, the acquisitions bolster Sanmina-SCI's international presence significantly. For Alcatel, the deal fits with its strategy to focus on R&D, product and solution design and new product introduction.

Sanmina-SCI's U.S. headquarters is in San Jose.