Flextronics acquires Motorola Mobility's plants in China, Brazil

Singapore-based contract manufacturer will take over Motorola Mobility's assembly plants, in a move that will streamline supply chain operations between the two companies.
Written by Jamie Yap, Contributor

Singapore-based electronics contract manufacturer Flextronics said a definitive agreement has been struck with Motorola Mobility to acquire and oversee the manufacturing operations in both Tianjin, China, and Jaguariuna, Brazil.

In a press statement Monday, Flextronics announced it will acquire Motorola Mobility's manufacturing operations in Tianjin as well as assume management and operation of the latter's facility in Jaguariuna. The move will streamline supply chain operations between the two companies.

The transaction is expected to close by the first half of 2013, and employees and assets of Motorola, which is owned by parent company Google, will move to Flextronics once the deal is completed. The deal also includes a manufacturing and services agreement for Android and other mobile devices, Flextronics added.

The agreement expands the long-standing collaborative and successful relationship between the two companies, Mike McNamara, CEO of Flextronics, said in the statement. "We look forward to leveraging our extensive manufacturing expertise and supply chain solutions to provide Motorola Mobility with increased value."

"The agreement with Flextronics is an important step forward for us in transforming our overall supply chain into a competitive advantage for Motorola Mobility. Flextronics has been our partner for many years, and its expertise and experience in manufacturing will enable us to focus on other areas of the supply chain where we can add the most value," said Mark Randall, senior vice president of supply-chain and operations at Motorola Mobility.

A Google spokesperson said the agreement covers the bulk of Motorola's manufacturing capacity but did not give further details, according to a separate report by Reuters Monday. Financial terms of the deal were also not disclosed.

The ongoing streamlining of Motorola Mobility's operations is part of a global restructuring effort by parent company Google. On Monday, the company announced it will all but pull out of South Korea, resulting in more than 500 jobs shed and ending the sales and marketing of its smartphones in the country.

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