Feeds

Nortel flogs factories to Flextronics

Switch firm's staff switch firms

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Nortel Networks is selling its manufacturing operations to Flextronics for between $675m and $725m.

Singapore-based Flextronics will also take over the management of the supply chain, related suppliers and third-party logistics. Not included in the deal - yet - are Nortel's European plants in France and Northern Ireland. But these are expected to move over to Flextronics, subject to due diligence.

Approximately 2,500 workers will transfer from Nortel to Flextronics. Of those employees, approximately 900 in Montreal, 650 in Calgary, 100 in Ottawa and 30 in Brazil will transfer to Flextronics. Under the terms proposed in Europe, approximately 440 in Monkstown, Northern Ireland (including approximately 55 designers) and 330 in France would transfer. Nortel hopes to save up to $100m a year from the four-year outsourcing agreement.

The deal marks the completion of a five-year plan to get out of manufacturing. Chahram Bolouri, president, Global Operations, Nortel Networks said: "We have been able to lower our cost of sales, reduce our fixed-cost infrastructure, and significantly reduce inventory levels and associated carrying costs."

Nortel yesterday said that it hopes to file restated results for 2003 by the end of September. It expects to file accounts for the first and second quarters of 2004 sometime in Q3 2004, after filing preliminary unaudited results by mid-August 2004. Nortel announced in March that it had to restate results dating back to 2001, amidst an regulatory probe into its accounting practices. Nortel forecasts its 2003 profit will be halved while losses for 2001 and 2002 will be reduced. ®

Related stories

Nortel stock rallies on talk of Cisco bid
No news is bad news for Nortel
Nortel re-restates results, fires CEO
Nortel suspends finance chiefs
Nortel delays results

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.