Google to sell Motorola Mobility's China manufacturing plant to Flextronics
11 Dec 2012
Singapore-based contract manufacturer Flextronics International Ltd yesterday said that it will buy Motorola Mobility's manufacturing operations in Tianjin, China and take over the management and operations of its Jaguariuna facility in Brazil.
The financial terms of the deal were not disclosed, but both companies expect to complete the transaction by the first half of 2013.
The deal, which encompasses most of Google-owned Motorola Mobility's manufacturing operations, also includes a manufacturing and services agreement for Android and other mobile devices.
"We are very pleased to announce today's agreement and expand our long-standing collaborative and successful relationship with Motorola Mobility," said Mike McNamara, chief executive officer, Flextronics. "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 their 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, supply-chain and operations for Motorola Mobility.
Internet giant Google's $12.5 billion acquisition of loss-making Motorola Mobility in 2011 was aimed at laying hands at the 14,600 patents and 6,700 pending patent applications of the cell phone maker and video technology provider.
Google had earlier said in a regulatory filing that it would cut about 4,000 jobs at Motorola Mobility, close about one-third of its production facilities, and streamline its mobile device line-up.
This week it announced plans to shut down almost all of Motorola Mobility's South Korean operations in 2013, which could lead to loss of an estimated 500 jobs, and indefinitely suspend operations at its phone assembling plant in Chennai in India from February 2013.
It is also seeking buyers for Motorola Mobility's set-top box business, which is expected to fetch the Mountain View, California-based company between $1.5 billion and $2 billion.
