Sponsored By

NEC, Celestica Ink $2.5B Deal

Celestica will assume supply chain management, sub-assembly, final assembly, integration, and testing for a broad range of NEC's gear

January 8, 2002

1 Min Read

TOKYO and TORONTO -- NEC Corporation (NEC) (NASDAQ: NIPNY) (FTSE: 6701q.l) and Celestica Inc. (Celestica) (NYSE, TSE: CLS) today announced that they have entered into an agreement regarding a strategic outsourcing relationship under which the companies will, on closing, commence a five-year supply agreement, with total estimated revenue of approximately US$2.5 billion. As part of the transaction, Celestica will assume supply chain management, sub-assembly, final assembly, integration and testing for a broad range of NEC's optical backbone and broadband access equipment. "NEC's growing partnership with Celestica will allow us to improve our competitive positioning by further leveraging our leading-edge R&D, product development and manufacturing expertise with Celestica's global manufacturing capabilities and supply chain management expertise," said Kaoru Yano, Senior Vice President of NEC and Company Deputy President of NEC Networks. "Through the alliance with Celestica, NEC intends to improve price competitiveness, production lead-times and supply chain flexibility to optimize overall manufacturing efficiency. NEC also chose to work with Celestica based on its reputation for providing global, advanced manufacturing capabilities and cost- effective supply chain solutions for the world's best communications and information technology companies." NEC Corp.Celestica Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like