Deliver Your News to the World

Elcoteq expands co-operation with Andrew Corporation and acquires Andrew’s plant in Romania


September 14, 2006 - Elcoteq SE and Andrew Corporation (NASDAQ: ANDW) have signed a global, long-term manufacturing supply agreement, which further strengthens Elcoteq’s position as a strategic partner to Andrew Corporation in Europe and the Americas. The agreement is expected to increase Elcoteq’s net sales by approximately 80 million euros during 2007. As a result of this new agreement, Elcoteq will be responsible for consolidating and managing the whole supply chain of Andrew’s filter business in Europe and will start manufacturing and system assembly in Mexico on a turnkey basis.

In addition, Elcoteq and Andrew have agreed that Elcoteq will acquire Andrew’s manufacturing unit in Arad, Romania including related equipment, work in progress and inventories. The total consideration to be paid by Elcoteq will amount to some 15 million euros. Elcoteq will take over the manufacturing unit immediately.

The 1,500 square-meter leased facility in Arad, Romania employs some 250 people and is well located close to the Hungarian border in a very cost-competitive part of Europe. The unit will continue to provide final assembly, tuning and testing services for network equipment products, mainly filters.

Elcoteq has provided manufacturing and related services for Andrew Corporation since 2001. As a result of the new deal, Elcoteq will begin to manufacture Andrew’s products also in St. Petersburg, Russia. In the Americas Elcoteq will start to offer manufacturing and related services to Andrew from the Juarez facility in Mexico. This business is expected to ramp up during the final quarter in 2006.

“We are extremely proud of Andrew’s decision to expand its collaboration with Elcoteq. Furthermore, the plant in Arad, Romania, provides us with an excellent entry to a new country where we see good opportunities for expanding our operations,” says Mr Jouni Hartikainen, President and CEO, Elcoteq SE. “From the strategic point of view collaboration with Andrew Corporation is a perfect fit with our Communications Network Equipment business area as it will boost the area’s sales significantly over the coming years, leverage our existing capabilities and set-up, and at the same time broaden the business area’s geographical scope,” Mr Hartikainen added.

“We selected Elcoteq because it is the number one electronic manufacturing services company in the world for the type of products it will manufacture for Andrew,” said Mr Mickey Miller, Group President, Base Station Subsystems, Andrew Corporation. “Elcoteq has extensive experience in the production competencies required as part of our mixed manufacturing model. Elcoteq’s expertise will help us achieve our goals of lowering costs, reducing complexity, and increasing flexibility in our filter supply chain.”

Reeta Kaukiainen
Director, Communications and Investor Relations

About Elcoteq
Elcoteq SE is a leading electronics manufacturing services (EMS) company with original design manufacturing (ODM) capabilities in the communications technology field. Elcoteq provides global end-to-end solutions consisting of design, NPI, manufacturing, supply chain management, and after-sales services for the whole lifecycle of its customers’ products. These products include terminal products such as mobile phones and set-top boxes as well as communications network equipment such as base-stations, tower-top amplifiers, and microwave systems. The company operates in 16 countries on four continents and employs some 23,000 people. Elcoteq’s consolidated net sales for 2005 totaled 4.2 billion euros. Elcoteq SE is listed on the Helsinki Stock Exchange. For more information visit the Elcoteq website at

About Andrew Corporation
Andrew Corporation (NASDAQ: ANDW) designs, manufactures and delivers innovative and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries. Andrew (, headquartered in Westchester, IL, is an S&P 500 company founded in 1937.


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.