NEC America Inc, a US telecommunication equipment subsidiary of NEC Corp is to sell its manufacturing plant in Oregon and expand its information systems and solution-related divisions in a restructuring aimed at boosting the bottom line. The Oregon plant, NEC’s only US production base for telecoms equipment, will be sold to a contracted manufacturing company chosen through tender according to a NEC statement. The price will be several tens of millions of dollars.
NEC America will continue buying products from the plant, which has 500 staff and makes $200m worth of products a year. The Oregon plant offers growth potential for a company specializing in production. The sale will also help NEC reduce interest bearing debt, said Kaoru Yano, president of NEC America.
NEC America plans plans to strengthen its information systems division by boosting staff levels to 1,600 within three years from the current 1,100, he said. It will also establish a $45m fund for investing in unlisted internet-related firms in the US.
