Sanmina-SCI signs $5 billion pact with IBM
Reuters
(01/08/02, 12:45:32 PM EST)
NEW YORK -- Sanmina-SCI Corp. will take over the manufacture of IBM's NetVista desktop computers in the United States and Europe under a three-year, $5 billion agreement, the companies said on Tuesday.
Sanmina-SCI will acquire two IBM buildings and certain capital equipment in Research Triangle Park, North Carolina, site of U.S. production of the computer line, and take on 900 IBM employees there. Terms of the acquisition were not disclosed.
Sanmina-SCI will also take on 82 employees at IBM's smaller Greenock, Scotland, location. Those employees manage European production of NetVista, which was previously done by another third-party manufacturer.
International Business Machines Corp. said it will continue to manage and manufacture its ThinkPad notebook computers, which are not part of this agreement.
Sanmina-SCI was created late last year by the merger of Sanmina Corp. and SCI Systems.
IBM said the deal with Sanmina-SCI would allow it to lower its costs while enabling it to deliver a full line of personal computer products. Sanmina-SCI will build the computers in the current North Carolina and Scotland operations.
IBM also said that it may eventually transfer its NetVista manufacturing operations for Mexico and Latin America, located in Guadalajara, Mexico, to Sanmina-SCI.
IBM was up 15 cents at $124.20 in early trading on the New York Stock Exchange while Sanmina-SCI was up $1.17 cents, or 5 percent, at $23.22 on Nasdaq.
www.ebnews.com/story/OEG20020108S0046
Nowonder
Reuters
(01/08/02, 12:45:32 PM EST)
NEW YORK -- Sanmina-SCI Corp. will take over the manufacture of IBM's NetVista desktop computers in the United States and Europe under a three-year, $5 billion agreement, the companies said on Tuesday.
Sanmina-SCI will acquire two IBM buildings and certain capital equipment in Research Triangle Park, North Carolina, site of U.S. production of the computer line, and take on 900 IBM employees there. Terms of the acquisition were not disclosed.
Sanmina-SCI will also take on 82 employees at IBM's smaller Greenock, Scotland, location. Those employees manage European production of NetVista, which was previously done by another third-party manufacturer.
International Business Machines Corp. said it will continue to manage and manufacture its ThinkPad notebook computers, which are not part of this agreement.
Sanmina-SCI was created late last year by the merger of Sanmina Corp. and SCI Systems.
IBM said the deal with Sanmina-SCI would allow it to lower its costs while enabling it to deliver a full line of personal computer products. Sanmina-SCI will build the computers in the current North Carolina and Scotland operations.
IBM also said that it may eventually transfer its NetVista manufacturing operations for Mexico and Latin America, located in Guadalajara, Mexico, to Sanmina-SCI.
IBM was up 15 cents at $124.20 in early trading on the New York Stock Exchange while Sanmina-SCI was up $1.17 cents, or 5 percent, at $23.22 on Nasdaq.
www.ebnews.com/story/OEG20020108S0046
Nowonder
