Elcoteq, Marconi sign manufacturing agreement.

Elcoteq Network Corp. (Irving, TX, www.elcoteq.com), a provider of electronics manufacturing services (EMS) for the communications technology industry, and Marconi Corp. plc (London, UK) have announced that Elcoteq will become Marconi's preferred partner for the manufacture of fixed wireless access products and associated technologies.

Elcoteq will offer Marconi new product introduction (NPI), manufacturing, pre-field installation and repair services primarily for its microwave communications systems business. Cooperation also includes transfer of Marconi's electronics manufacturing in Offenburg, Germany, to Elcoteq, along with its 340 employees. The unit will continue to produce digital microwave communications systems for Marconi's telecommunications networks solutions. The total consideration paid by Elcoteq will amount to approximately $11.8 million. Elcoteq took over the Offenburg unit in November 2003.

Elcoteq will further develop the Offenburg unit as an NPI center for its Communications Network Equipment (CNE) business serving Marconi and other customers. The unit will work closely with other Elcoteq manufacturing units in Europe and elsewhere. The company already has a plant in Uberlingen in southern Germany.

Marconi is a telecommunications equipment, services and solutions company. The company's core business is the provision of optical networks, broadband routing and switching and broadband access technologies and services.