Elcoteq acquires Nokia's monitor manufacturing unit in Pecs, Hungary; Nokia to discontinue its display manufacturing and focus on new Mobile Display Appliances.Business Editors HELSINKI, Finland--(BUSINESS WIRE)--January 10, 2000 Elcoteq and Nokia have agreed today that Elcoteq will acquire Nokia's monitor manufacturing unit in Pecs, Hungary. At the same time, Nokia has decided to discontinue its display manufacturing and will now focus on new product development in its newly formed Nokia Mobile Display Appliances venture. The deal is expected to be closed in January and is effective retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin as of January 1, 2000. As announced earlier, display manufacturing in Nokia's plant in Salo, Finland Salo (IPA: [ˈsɑlo]) is a town and municipality of Finland. It is located in the province of Western Finland and is part of the Finland Proper region. , will discontinue. The Nokia Display Products' manufacturing unit in Reynosa, Mexico will also be ramped down in phases. Elcoteq will continue to manufacture monitors for Nokia in Pecs. Commenting on the changes Reijo Lantto, President of Nokia Display Products, said: "This development is a logical step in Nokia's continuous focus on its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Tuomo Lahdesmaki, President of Elcoteq, said: "This acquisition will help Elcoteq meet its growing customer demand for electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). , including mobile phone customers. We recently announced that we will shortly initiate box build mobile phone manufacturing projects in our existing plant in Pecs. We welcome the addition of the highly skilled Nokia Display Products' employees in Pecs to join Elcoteq. This timely acquisition serves to strengthen our skills and increase manufacturing capacity. We are also happy to continue manufacturing Nokia displays as needed as needed prn. See prn order. , and later on the plant will take on the production of other electronics products. We believe that this arrangement will have a positive impact on Elcoteq's profits in 2000." With its 1400 employees and 30,000 square meters Noun 1. square meter - a centare is 1/100th of an are centare, square metre area unit, square measure - a system of units used to measure areas , the Nokia Display Products Pecs plant will substantially increase Elcoteq's ability to serve continental European markets and highlight Pecs' status as a key manufacturing location for Elcoteq. In 1998, Elcoteq built an 11,000 square meter plant in Pecs, which currently employs nearly 1000 people. The newly formed Nokia Mobile Display Appliances unit focuses on the development of entirely new display devices. These devices will enable Internet-based, visually rich communications in the mobile environment. The unit aims to utilize Nokia's know-how in high performance displays, IP technologies and mobility to offer end users completely new communications solutions. The Nokia Mobile Phones manufacturing unit in Salo has given rise to many new job opportunities for Nokia Display Products' employees since the beginning of 1999. Already some 230 employees have moved to work with Nokia Mobile Phones in Salo. The active search for new job opportunities for Nokia Display Products' personnel will continue both in Salo and Reynosa. The acquisition will cause no changes in the work contracts of Pecs' manufacturing unit personnel. About Nokia: Nokia is paving the way to the mobile information society with its innovative products and solutions. Nokia is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks including related services. It also supplies multimedia terminals and computer displays. In 1998, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight totaled EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 13.3 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 15.7 billion). Headquartered in Finland, Nokia is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 53 000 people. For more information please visit: www.nokia.com About Elcoteq: Elcoteq Network Corporation is a leading European company providing electronics manufacturing services. Elcoteq has eleven manufacturing services plants. These are located in Finland, Estonia, Russia, Hungary, Poland, Germany, Mexico and China. Elcoteq manufactures electronic end-products and subassemblies for companies in telecommunications, industrial electronics, information technology and consumer electronics. Based in Finland, the Group has globally over 6,000 employees. Elcoteq's January - September net sales were nearly EUR 0.5 billion in 1999. Elcoteq's Series A shares are quoted on the Helsinki Exchange. For more informationplease visit: www.elcoteq.com |
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