Tuesday, June 16, 2009

Ericsson to Acquire Elcoteq's Manufacturing in Estonia

Ericsson signed an agreement with Elcoteq, a supplier to Ericsson, for part of its manufacturing operations in Estonia. The purchase price is EUR 30 million, relating to inventory and some minor assets. The agreement also includes transfer of about 1,200 employees.

Elcoteq supplies radio access products for Ericsson's 2G and 3G base-stations, along with optical- and transmission equipment.

Ericsson outsourced its volume production more than ten years ago. The company said its manufacturing strategy remains the same.