Flextronics, Casio enter $1.5B outsourcing relationship

Singapore – Flextronics, a global provider of operational services, and Casio Computer Co. Ltd. have signed a contract manufacturing agreement in which Flextronics will manufacture a variety of Casio’s electronic products.

The agreement includes a purchase of a Casio production facility in Shah Alam, Malaysia. In addition, Casio will sell its manufacturing operations in Aichi, Japan, excluding land and building. The contract includes Flextronics’ acquisition of certain equipment from Casio’s factory in Kluang, Johor, Malaysia.

The value of the agreement is estimated to exceed US$1.5 billion over a three-year period.

This strategic relationship will allow Casio to leverage Flextronics’ global manufacturing infrastructure, procurement and supply chain resources, enabling Casio to provide its consumer electronic products at competitive prices.

The alliance will also allow Flextronics to gain access to Casio’s design and production engineering capabilities. Additionally, both companies will establish strong collaboration in new product development and design activities.

The facility in Aichi, Japan, will serve as Flextronics site for repair, logistics, and distribution services. The facility will also act as a launch point for Japanese customers’ new products introductions.

The acquisition will bring Flextronics’ total manufacturing footprint in Asia to over 11 million square-feet with a workforce of 26,000 people.

The transaction is expected to close on July 31, 2002.


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