Elcoteq Sells Its St. Petersburg Plant
Elcoteq SE has signed an agreement with Optogan CJSC to divest Elcoteq’s subsidiary ZAO Elcoteq, in St. Petersburg, Russia. The deal has already obtained competition authorities´ and other regulatory approvals. The closing of the transaction is expected to take place by May 31, 2010.
The transaction is a share deal, in which the purchaser acquires 100 percent of the shares in Elcoteq’s subsidiary in St. Petersburg including the premises and the personnel of about 40 employees but excluding any customer agreements. The transaction reduces Elcoteq’s total costs by approximately 2 million euros on annual basis and has a considerable positive impact on the second quarter cash flow.
Elcoteq has now consolidated all European electronics manufacturing and after market service activities to its units in Pécs, Hungary and Tallinn, Estonia.
Elcoteq SE is the global Life Cycle Service Partner for high-tech product and service companies.
Engineering, Manufacturing, Fulfillment and After Market Services are the cornerstones of Elcoteq’s extensive service offering. Elcoteq has a proven track record in electronics manufacturing services (EMS) and a global factory network coupled with modern manufacturing equipment and consistent systems and processes.
Products include Consumer Electronics devices such as mobile phones and their accessories, set-top boxes, LED lamps and luminaries, flat panel TVs as well as System Solutions products such as infrastructure systems, modules and other industrial segment products.
The Group’s consolidated net sales for 2009 totaled 1.5 billion euros and it employs approximately 10,000 persons. Elcoteq SE is listed on the Nasdaq OMX Helsinki Ltd. For more information visit the Elcoteq website at www.elcoteq.com.
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