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Optical components

Oclaro Preps Malaysian Move

SAN JOSE, Calif. -- Oclaro, Inc. (Nasdaq: OCLR), a tier-one provider and innovator of optical communications and laser solutions, and Venture Corporation Limited (SGX: VENM.SI), a leading global provider of technology services, products and solutions, today announced they have signed and closed a definitive agreement to transfer Oclaro's Shenzhen, China, final assembly and test operations to Venture's Malaysia facility in a phased and gradual transfer of products over the next three years.

During the three-year transition period and in order to continue to provide superior quality and delivery performance to its customers, Oclaro will retain control of the manufacturing facility in Shenzhen, and employees will remain employed by Oclaro. Several of Venture's operational personnel will relocate to Shenzhen to provide support to Oclaro, oversee the transfer, and ensure that products transitioned to Venture's Malaysia facility are fully qualified by customers before the products are phased out of the Shenzhen facility.

"Today's announcement is a significant milestone in Oclaro's strategy to adopt an outsourced back-end manufacturing model, focus on our core competencies and position the company to scale," said Alain Couder, chairman and CEO of Oclaro. "A key factor in choosing our contract manufacturing partner was to ensure we would be able to control and manage a smooth transition for our customers. Our agreement with Venture is expected to provide this seamless transition, while strengthening our balance sheet, and providing a financing source to fuel continued innovation. Complementing our existing outsourced manufacturing relationship with Fabrinet, this move further simplifies our manufacturing model, enabling us to create a world-class supply chain management capability, and will offer our customers greater responsiveness and flexibility."

Oclaro Inc. (Nasdaq: OCLR)

^Eagle^ 12/5/2012 | 5:38:30 PM
re: Oclaro Preps Malaysian Move

So, 


Fabrinet looses a large customer albeit spread over a couple of years (release stated Fabrinet deal coming to an end).  And Shenzhen looses the Oclaro owned factory and the jobs that went with it.


So, Thailand and China both loose jobs to Malaysia.  


Wonder if this will become a trend?  Jobs moving from established CM sites to new CM sites in lower cost countries.


if so, how to profit from this?  Other optical players, will they follow?  


Will we see big companies like Apple moving from China to Malaysia or Bangledesh or someplace else cheeper than China? or only companies like Oclaro?  


sailboat


 

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