Fujitsu Siemens hands over server manufacturing

Fujitsu Siemens Computers is to outsource server production in its German plant in Padborn to Flextronics International. The company will not relinquish control of the research and development or the sales and marketing of the advanced network products, but it will pass the manufacturing and logistics facilities in Germany to Flextronics, AsiaBizTech newswire reported today. The business, with all 650 staff, is due to become a Flextronics subsidiary on 1 January. This is the second outsourcing move by Fujitsu – or one of its divisions - in recent weeks. Two weeks ago it was revealed that the Japanese company would cut its own DRAM production for both PC and non-PC devices, hiving off the manufacture to firms in Taiwan. And its current union with Siemens in Europe means it has harnessed the German manufacturer's facilities for PC production, while using its own technology. David Teague, Fujitsu Siemens Computers president for the UK and Ireland, said: "There is no strategy to pull out of manufacture." He said the European company was going through a period of "inevitable" rationalisation, but admitted it would look at more outsourcing deals if this would cut overheads. ® Related stories: Fujitsu Siemens launches first post-merger notebooks