IBM signs $5 bn pact with Sanmina-SCI

NEW YORK: International Business Machines Corp. and contract manufacturer

Sanmina-SCI Corp., on Tuesday said they signed a three-year, $5 billion

agreement for Sanmina-SCI to take over IBM's NetVista desktop manufacturing

operations in the United States and Europe.

Sanmina-SCI, which merged late last year, will acquire IBM's manufacturing

operations for this line of personal computers and make them for IBM.

IBM said the move would allow it to lower its costs while enabling it to

deliver a full line of personal computer products. Sanmina-SCI will build the

computers in the current facilities, located in North Carolina and Scotland.

IBM said it will transfer 980 employees in both North Carolina and Scotland

to Sanmina-SCI.

(C) Reuters Limited.