Flextronics Adds Factories
Flextronics International, which has a major manufacturing and design facility in Franklin County, will buy two factories from Japan's Casio Computer Co. for an unnamed price, in an agreement accompanied by a $1.5 billion outsourcing deal.
Singapore-based Flextronics, the world's largest electronics contract maker, won a three-year original equipment manufacturing (OEM) deal to produce a range of Casio products. Casio said it would hand over production at the plants - one in Japan and one in Malaysia - by the end of July.
Casio's factory in Japan produces cellular phones, digital cameras and liquid crystal display televisions. The Malaysian plant specializes mainly in calculators, according to a Japanese newspaper.
The acquisition is in line with Flextronics' strategy of focusing on lower-cost locations, the company says. It will bring its manufacturing operations in Asia to more than 11 million square feet with a workforce of more than 25,000 people.
Shares of Flextronics (Nasdaq: FLEX) closed up almost seven percent at $14.09 in New York on Monday, outperforming a 3.23 percent rise in the Nasdaq Composite Index. Midday Tuesday, the stock was up with the market, trading at around $15.50. That's still off significantly from its 52-week high of $33.10.
Flextronics: www.flextronics.com
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