DIGITAL AND CIRCO CRAFT SIGN SALES AGREEMENT FOR PHYSICAL ASSETS OF DIGITAL'S PUERTO RICAN PWB FACILITY
DIGITAL AND CIRCO CRAFT SIGN SALES AGREEMENT FOR PHYSICAL ASSETS OF DIGITAL'S PUERTO RICAN PWB FACILITY SAN JUAN, Puerto Rico, Oct. 16 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) and its wholly-owned subsidiary, Digital Equipment Corporation de Puerto Rico, announced the signing today of an agreement with Circo Craft Co. Inc. of Quebec to sell the physical assets of Digital's Puerto Rican printed wiring board (PWB) facility in San German. This facility is one of two sites involved in Digital's year-long phase-out of manufacturing on the island. Miguel A. Nazario Franco, president and general manager of
Digital de Puerto Rico, commented, "We are very pleased to enter into this agreement with Circo Craft. Digital has been a long-term corporate citizen of Puerto Rico and continues that relationship through our Sales and Services facilities on the island. This agreement will allow us to follow our manufacturing strategy of divesting in areas that don't differentiate us, and, at the same time, assist a company that wishes to begin its work in Puerto Rico."
By mutual agreement, the terms of the transaction will not be disclosed. However, Circo Craft will use the assets, which include machinery, equipment, and leasehold improvements, in the operation of a newly-formed subsidiary called DY-4. It is also anticipated that four senior managers currently employed by Digital in Puerto Rico will join DY-4 and hold equity interest in the subsidiary. "DY-4 will complement our three Canadian plants and significantly strengthen Circo Craft's competitive posture in North America," said Hans-Karl Muhlegg, president and chief executive officer of Circo Craft. He added, "More importantly, it will provide the capacity, flexibility and economies of scale that international customers require in short order." Alfredo Salazar, Jr., administrator of the Puerto Rico Economic
Development Administration, in welcoming Circo Craft to Puerto Rico expressed his satisfaction with the agreement that was signed today. "It is particularly significant that Circo Craft chose Puerto Rico as its manufacturing site to supply the North American common market that will be created as a result of NAFTA. It is a clear indication that Puerto Rico will continue to be an attractive site to locate a manufacturing plant that requires a highly-skilled workforce to produce high-quality products at a competitive price."
Salazar noted that the sale was a joint effort between Digital and his agency, and said that the two would continue their work on the disposition of other Digital manufacturing assets. Digital Equipment Corporation, headquartered in Maynard,
Mass. is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions -- from desktop to data center -- in open information environments.
-0- 10/16/92 /CONTACT: Nikki Richardson of Digital Equipment Corporation 508-493-6369; Blanca Cebollero of Puerto Rico Economic Development Authority, 809-753-1172/ (DEC) CO: Digital Equipment Corporation; Circo Craft Co., Inc. ST: Massachusetts, Puerto Rico, Canada IN: CPR SU: CON
CH -- NE003 -- 0834 10/16/92 10:02 EDT
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|Date:||Oct 16, 1992|
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