BenQ is disposing of the operation as part of its efforts to slim down the mobile handset business its acquired from Siemens AG in 2005. The Aalborg facility will be integrated into Motorola’s mobile devices business and become a product development center for the company.

Motorola’s mobile device sales were $21.5bn in 2005, 58% of total revenue, and the company has been looking at ways to speed up development of new products to satisfy a rapidly evolving market. Last year it bought the intellectual property portfolio and engineering team of moribund UK mobile handset developer Sendo Ltd

Ron Garriques, president of Motorola Mobile Devices, said the acquisition would enhance its capabilities in mobile phone development, software application development, and antenna technology.

BenQ’s mobile handset business aims to be in the black by the end of the year and the sale Aalborg facility follows a move to centralize German development activities at the sites in Munich and Kamp-Lintfort.