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IBM outsources eServer xSeries production

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IBM is hollowing out its manufacturing arm, with a huge transfer of server parts, places and, people to Sanmina-SCI.

The contract manufacturing business has won a deal worth $3.6bn over three years to make eServer xSeries systems and Intellistation workstations for IBM in Europe, the Americas, Middle East and Africa. Also, Sanmina-SCI will handle distribution and fulfilment for IBM NetVista desktop systems, ThinkPad notebooks, and eServer xSeries systems, as well as handling custom configuration for some ThinkPad notebooks for customers in these regions.

Sanmina-SCI is taking on 650 staff at IBM Greenock and is buying some plant for undisclosed terms. No redundancies are envisaged. Also, 450 IBM manufacturing staff in Guadalara, Mexico and 10 in North Carolina are joining Sanmina-SCI.

This time last year, IBM handed over its North American and European PC manufacturing business, in a deal estimated at $5bn over three years.

IBM today also announced it is to outsource its North Carolina refurbishment facility to Solectron, in a three-year deal worth $120m. The company says 250 employees will be offered positions with Solectron. ®

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