Advertisment

SCI Systems acquires IBM operation in Japan

author-image
CIOL Bureau
Updated On
New Update

HUNTSVILLE, Ala: SCI Systems Inc. said on Monday that it would acquire IBM

Corp.'s computer design and manufacturing operations in central Japan, resulting

in more than $700 million in new sales in the first year.

Advertisment

Huntsville, Alabama-based SCI, which is being acquired by San Jose-based

Sanmina Corp., said it will perform product engineering, testing and

manufacturing services for products from IBM's storage and PC divisions at the

Japanese facility in Shiga prefecture.

"Japan is key to our Asian strategy," said Gene Sapp, SCI's

chairman and chief executive officer. "This agreement represents continued

advancement in SCI's strategy focused on the Japanese marketplace while

strengthening our engineering focus on storage and mobile computing

products."

IBM will maintain some operations at the facility. A spokesman for SCI could

not be immediately reached and it was not immediately clear if SCI would assume

any employees from IBM as part of the agreement.

Shares in SCI closed down 2.4 per cent at $17.57 on the New York Stock

Exchange. Their 52-week high is $46.88 and their 52-week low is $15.57.

(C) Reuters Limited 2001.

tech-news