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Elcoteq buys Philips' flat-panel TV plant in Mexico

Posted: 10 Sep 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Philips Mexico plant? flat-panel TV? manufacturing facility?

Elcoteq SE has signed and closed an agreement to purchase Philips' flat-panel TV (FTV) assembly operations in Juarez, Mexico.

The deal includes a long term cooperation agreement with Philips to provide manufacturing services to Philips for its Latin American FTV business and its PBS (Philips Business Services) business in the Americas and a long term cooperation agreement with Funai Electric Co. Ltd to provide manufacturing services to Funai's FTV business in North America.

The acquisition also includes certain fixed assets and inventories of Philips' Juarez manufacturing operation. The current Philips personnel in Juarez, Mexico will continue in Elcoteq's organization. The plant currently has approximately 740 employees. Elcoteq will lease the required manufacturing space of approximately 20,000m? and will take over the Juarez unit immediately.

"We have a 12-year cooperation relationship with Elcoteq and are confident it is an excellent partner when we continue streamlining our global supply chain for FTV products," commented Rob de Ridder, senior VP for Philips. "Our move to transfer the Juarez operation to an experienced and leading EMS company in this field was a logical step in optimizing our supply base in the FTV business."

According to Shinji Seki, president of AV business unit and executive officer of Funai Electric Co. Ltd, "We look forward to working together with Elcoteq to secure the high quality and cost competitive product supply to our customers in the region. We believe Elcoteq is a good EMS partner based on its flexible global operations network and comprehensive service offering."

"This acquisition significantly accelerates the development of our home communications business and service offering. This deal marks our entrance into complete final assembly of FTVsa strategic product segment for us where we so far have provided PCB assemblies and various subassemblies to our customers" says Vesa Keranen, president of Elcoteq home communications.

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