Flextronics completes deal with Casio.

Flextronics (Singapore) has completed an outsourcing agreement with Casio Computer Co., Ltd. (Tokyo, Japan), a consumer electronics company, in which Flextronics will manufacture a variety of Casio's electronic consumer products.

The agreement includes the purchase of a Casio production facility in Shah Alam, Malaysia. In addition, Casio sold its manufacturing operation in Aichi, Japan, excluding land and a facility. The Aichi location will serve as a Flextronics' site for repair, logistics and distribution services, as well as a launching point for Japanese customers' new product introductions. Flextronics has also acquired certain equipment from Casio's factory in Kluang, Johor, Malaysia. The value of the agreement is now estimated to be $2 billion over a four-year period, up from $1.5 billion over a three-year period as previously announced.

The strategic relationship allows Casio to leverage Flextronics' global manufacturing infrastructure, procurement and supply chain resources to provide consumer electronic products at new competitive price points. Both companies will establish a collaboration in new product development and design activities.

Based in Singapore, John can be reached by e-mail at [e-mail].