Solectron expects to move the operation to the company’s East Coast optical center of competence in Charlotte, N.C. As a result of the transaction, Solectron assumes full manufacturing, test and certain New Product Introduction (NPI) responsibility for Cisco’s core DWDM multiplex, demultiplex, and add/drop optical modules for the next two years. Solectron will provide a full range of services to Cisco, consisting of optical assembly and test, which includes splicing and fiber handling; supply-base management; and in-warranty repair services.
Separate from the transaction, Solectron has offered employment to key operations and management individuals who are familiar with Cisco’s optical product line and have significant optical experience and capabilities.
Solectron and Cisco have worked closely together for more than seven years and we are pleased to further expand this relationship to the fast growing optical-module market, said Dan Perez, Solectron’s senior vice president of worldwide account management and marketing, and global account executive for the Cisco Systems account. With this acquisition, we continue to build and strengthen our optical capabilities for our customers in the telecommunications and networking industry.
The acquisition further enhances Solectron’s existing infrastructure and capabilities for the optical networking market. In 1997, Solectron acquired Ericsson’s site at Norrköping, Sweden, whose experience included more than 15 years of optical prototyping module assembly, test development, DWDM systems integration and test, and sustaining capability in the telecom marketplace. Since then, Solectron has expanded its optical capabilities to sites in Milpitas, Calif.; Hillsboro, Ore.; Charlotte, N.C.; and Austin, Texas; through OEM divestitures and greenfield operations. The company also expects to further expand its optical assembly capabilities into low cost regions in the near future.
