Troubled Nortel farms out manufacturing (Asia)

[dArKeR]

Deeply troubled Nortel Networks Corp. is selling manufacturing operations that employ 2,500 people, which could raise about $500 million and create long-term savings for the company as it deals with accounting investigations in the United States and Canada.


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The telecommunications equipment maker said Tuesday it is turning over factories in Canada, Brazil, Northern Ireland and France to contract manufacturer Flextronics International Ltd. The sale will leave Nortel with 32,500 employees, down from 95,500 in 2000.

Brampton, Ontario-based Nortel, Canada's biggest technology company, has been on what it describes as a five-year plan to divest its manufacturing operations. It had disclosed the possibility of a deal with Flextronics in January.

Getting out of manufacturing will "enable us to respond with increasing effectiveness to significant ups and downs in market demand and customer needs," said the president of Nortel's global operations, Chahram Bolouri.

Singapore-based Flextronics...

http://msnbc.msn.com/id/5324779/

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