Another OEM win for Flextronics

Flextronics International has netted a deal to make kit for Psion Computers, the US company's second IT outsourcing agreement this week. Flextronics will make Psion's Series 5mx product and assemble printed circuit boards for the Series 7. It will also be responsible for the final configuration and packaging of the company's new Revo palmtop. The deal will involve Psion's factory in Greenford, Middlesex, transferring to Flextronics. The manufacturer will pay Psion PLC, Psion Computers' parent company, £370,000 cash for the plant's assets. Psion will take a charge of £450,000 in fixed asset write-offs and other costs relating to the deal. Psion's other manufacturing sites at Didcot and Milton Keynes would not be affected by the agreement, the company said. The move follows an outsourcing deal struck between Flextronics and Fujitsu Siemens Computers, reported here yesterday. Through this agreement, Flextronics is to take over server production at the company's plant in Padborn, Germany. ®