Elcoteq SE, an integrated electronics manufacturing services (EMS) company in the communications technology field, will 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 current Philips personnel in Juarez, Mexico will continue in Elcoteq's organization. The plant currently has approximately 740 employees.
The acquisition provides Elcoteq with capabilities to offer final assembly services for FTVs as well as related engineering and new product introduction (NPI), supply chain management and sourcing services.
"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 Vice President 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."