Alcatel-Lucent has completed the transfer of its optical transport manufacturing activities in Trieste, Italy, to Singapore’s Flextronics.
Flextronics will take responsibility for new product introduction, manufacturing and integration as well as repair services of Alcatel-Lucent optical equipment at the site. Alcatel-Lucent and Flextronics have also signed a five-year, renewable contract for the supply of optical products.
Flextronics has a long-standing relationship with Alcatel-Lucent, which is on track to be acquired by Nokia in 2016 (see Nokia to swallow Alcatel-Lucent in €15.6B deal).
The asset transfer to Flextronics includes manufacturing, real estate, support and service activities related to optical transport equipment at the Alcatel-Lucent plant in Trieste, Italy. Employees and temporary workers currently on staff at the site have been transferred as well.
Alcatel-Lucent also says the agreement is the beginning of transformation of Trieste into “a global centre of excellence for optical transport technologies”, and will also lead to new workloads being allocated to a local supplier.
Commenting on the agreement, Roberto Loiola, CEO and managing director of Alcatel-Lucent Italy, said: “We are pleased with the successful conclusion of this agreement, one which satisfies all parties involved. The Trieste plant will benefit significantly from becoming a global centre of excellence, with employment levels maintained and even increased. Alcatel-Lucent is transferring the Trieste plant to a proven player in manufacturing on this industrial scale, a track record that ensures the highest level of quality for the company’s optical transport products.”
“Flextronics values its long standing and successful relationship with Alcatel-Lucent and we are thrilled to expand our optical transport capabilities and accelerating the growth of our product portfolio with the addition of this business and the highly skilled team,” said Caroline Dowling, president of integrated network solutions at Flextronics.
Alcatel-Lucent has been winding down its direct presence in Italy. At the end of 2014, Alcatel-Lucent transferred its R&D activities in Vimercate, Italy, to SM Optics, a new company set up as a subsidiary of Siae Microelettronica (see Alcatel Lucent transfers optical R&D to SM Optics).