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.
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.