Marconi-Jabil Agreement Strengthens Supply-Chain Strategy

Compiled ByDeborah Austin Pursuing its new supply-chain strategy, global communications/IT company Marconi Communications has announced an agreement with Jabil Circuit Inc. Jabil will purchase five operations of Marconi Communications for $390 million and enter a three-year product supply agreement to provide electronic manufacturing services, including printed circuit board assembly and repair services. With this transaction, Marconi plans to enhance supply-chain activities around final product assembly and customer configuration in the UK, U.S., Italy, Ireland, and Germany. In October 2000 Marconi announced acceleration of its new strategy, designed to strengthen its competitive position by increased outsourcing. Pittsburgh-based Marconi is a division of Marconi PLC, a US$8.2 million London-based company. Jabil Circuit, headquartered in St. Petersburg, Fla., is a $3.6 billion manufacturer for global electronics product companies.