The agreement includes related engineering know how in Haukipudas Finland and Camberley UK. Upon closing of the acquisition SCI and Nokia will enter into global multi-year Manufacturing and Engineering Services Agreements. Under these Agreements SCI will manufacture units for Nokia’s current 2G and future 3G wireless base-station subsystems, and narrowband transmission products for fixed networks and provide development, manufacturing and sustaining-engineering services at both Facilities.
This transaction represents continued expansion of SCI’s global cooperation with Nokia. In 1998, SCI acquired Nokia facilities in Oulu, Finland and in Motala, Sweden and in October 2000, began building Nokia 2G base stations in Perth, Western Australia. This new transaction expands SCI’s unit production for base-stations and narrowband products manufacturing and engineering capability through the addition of approximately 1,250 skilled manufacturing and engineering employees.
This represents a significant milestone in SCI’s leadership strategy in the wireless telecommunication infrastructure manufacturing and provides Nokia access to SCI’s globally distributed manufacturing capacity and engineering capabilities and leading e-commerce supply chain management expertise. Gene Sapp, SCI Chairman and CEO said, We are very excited about the expansion of our Nokia relationship. With all of Nokia’s choices, their selection of SCI as a global EMS (Electronics Manufacturing Services) company and engineering services supplier is an endorsement we are very proud of. The skilled resources of the 1,250 Camberley and Haukipudas employees strengthen our European and worldwide telecom engineering and integration services offerings. We look forward to sharing our e-commerce capabilities and expertise with Nokia in a lasting and solid relationship.
Tapio Karjalainen, Senior Vice President, Product Operations, Nokia Networks said, Our selection of SCI as a key global EMS company is an important part of our strategy to meet the increasing worldwide demand for telecom networks. Our cooperation with SCI complements our own manufacturing capabilities and is a natural step in our networked manufacturing strategy. This cooperation brings us more flexibility and further improves our competitiveness.
Subject to regulatory approvals being received, it is anticipated that the closing of the transaction will take place before the end of the second quarter, 2001.
