ECI Telecom and SCI Systems announced today that they have signed agreements for the sale of ECI's Shemer facility and a multi year agreement for some of ECI Telecom's manufacturing activities.
The new agreements include the purchase of ECI Telecom's 'Shemer' Manufacturing Plant located in Petah Tikva, Israel, by SCI's Israeli subsidiary, SCI Tel-Aviv Ltd. The agreements also include a multi year supply agreement in which ECI Telecom will outsource part of its manufacturing activities to SCI. SCI will employ over 350 workers of the Shemer plant. Formerly a part of Tadiran Telecommunications, the Shemer facility produces printed circuit board assemblies and other products for ECI Telecom and provides related services.
The purchase of Shemer is expected to close by December 31st, 1999.
Commenting on the agreement with SCI Systems, David Rubner, ECI Telecom's CEO said:, "We are very pleased to announce this new manufacturing agreement with a premier EMS provider such as SCI Systems. In anticipation of substantial increases in volume demand, this new agreement is in line with our strategy to further reduce production costs by outsourcing some of our manufacturing activities."
A. Eugene Sapp, CEO and President of SCI Systems, said: "SCI is pleased to be selected as the manufacturing partner to ECI Telecom. This first important acquisition anchors SCI's strategy to provide electronic manufacturing services for the growing Israeli market. ECI Telecom is an important addition to SCI's expanding customer portfolio within the global telecommunications market."
Published by Israel's Business Arena on December 21, 1999.