Vol. 12, No. 8: August 2002
Table of Contents
ODM and EMS Markets Begin To Overlap
Many EMS people might say, “ODMs – who cares?” They might add, “After all, ODMs are in Taiwan, and we don’t compete for the commodity computer products that they build.” Well, the EMS industry better start caring because the ODM and EMS markets are starting to converge. Here are the forces at work.
· ODMs are competing for the same TAM (total available market) that EMS providers are. In particular, Japanese OEMs in the outsourcing process will look at both the EMS and ODM models for new-product launches.
· ODMs are no longer confined to notebooks and desktop PCs. They have branched out into products such as cell phones and servers (see table). Some such as Accton specialize in communications products. The ODM business is now more than a PC-products industry.
· More EMS providers are able to do full product design (April, p. 1). In such cases, ODMs may no longer have the upper hand in design capabilities. Indeed, the breadth of design services offered by these providers matches up with the extent of ODM design services. With EMS providers adding design capabilities, providers and ODMs are becoming more and more alike.
· EMS providers and ODMs are beginning to intrude into each other’s space. Some ODMs such as Accton and MiTAC engage in contract manufacturing (table), while a growing number of EMS providers are entering the ODM business. Flextronics has developed a low-cost mobile-phone design to sell as an ODM would. PEMSTAR is rolling out six reference designs (April, p. 3). Elcoteq just announced it will offer ODM services under its revamped business strategy (see p. 7). And these providers are not alone.
These cases show that a major barrier between the two markets is no longer holding. ODMs develop product designs on their own and then sell the designs to customers as a turnkey manufactured package. In contrast, EMS providers typically design and manufacture to customer orders. By showing a willingness to develop a product design before there are customers for it, the three providers are crossing that ODM barrier.
If the EMS and ODM worlds are starting to resemble a Venn diagram with the circles barely touching, how large then is the ODM side? Market research firm IDC projects the ODM market will reach $22.5 billion this year. Arima Group, an ODM featured in the following article, uses a 2002 market estimate of $30 billion. Although these estimates differ somewhat, both companies see the ODM market growing this year by double digits. IDC is predicting 13% ODM growth, while Arima expects an increase of between 15% and 20%. In today’s business climate, those rates would appeal to many EMS companies.
Who are these ODMs that could be competitors in the future? In a survey of Taiwan-based ODMs, MMI obtained information on nine major ODMs (table). These are not small players: only one of them reported 2001 sales below $1 billion. Their 2001 revenue totaled $19.6 billion, but not all of it was ODM. In the case of MiTAC, contract manufacturing revenue might have contributed more than half of MiTAC’s sales.
This data shows also that all nine ODMs are manufacturing in China. In some cases, China accounts for the majority of facility space or close to it.
EMS providers often portray ODMs as lacking global manufacturing. The survey shows that this is not always the case. Three ODMs listed manufacturing in Asia, North America and Europe.
So ODM manufacturing is not restricted to Asia. Nor are EMS design services limited to DFM and board layout. As the EMS and ODM markets overlap, each side will learn that it shares some common ground with the other.
Q&A with Greg Memo of Arima
In discussions of EMS providers versus ODMs, seldom heard from are the ODMs themselves. So MMI thought it would be good idea to obtain an ODM point of view. A good idea, except that ODM executives are typically based in Taiwan, presenting time and distance problems. The newsletter found its solution in Greg Memo, president of Arima Group North America (Newark, CA). Memo heads the North American operations of Arima Group, a Taiwan-based ODM providing product design, manufacturing and logistics services for leading IT and consumer electronics companies.
Memo knows the ODM business from both sides of the street. Earlier in his career, he was a VP and GM at the former Compaq, where he founded the company’s Consumer Notebook business in 1996. While running that business, Memo worked with ODMs including Arima.
So MMI turned to Memo for an ODM’s perspective on the EMS-versus-ODM debate. The newsletter also wanted to learn more about the ODM market and how an ODM operates within it. Here’s what Memo had to say.
MMI: How do you differentiate Arima within the ODM market?
Greg Memo: One of the unique things about Arima is that the Arima Group actually consists of eight separate companies developing a wide range of technologies and products. So when you look at the types of products the Arima Group produces, there are notebooks, desktops, servers, PDAs and cell phones. But Arima also has invested in various key components such as batteries, wireless modules, displays, optoelectronics, photonics, epitaxy and software. By having this diverse set of companies, we can leverage these technologies and capabilities across our products. For instance, with cell phones we can use displays from Arima Display, batteries from the battery division, and key ICs from the other companies. The result is a very cost-effective design.
Another unique feature of Arima in the ODM world is Arima’s strength in product design. Of course, we have our original design roadmap, where we do our own products. However, Arima also has a great deal of experience in jointly designing products with our key customers. With joint designs, our customers get the benefits of the leveraged ODM model but with the flexibility of customizing the product to their specific needs.
Lastly, this is not just a product business but a customer service oriented business. So the third key differentiator for Arima is that we have set up an Arima North America office, which I’m heading up. Our local office [in Newark, CA] is staffed with experts in joint design and ODM projects. Everyone in the office has worked with numerous large OEM customers or worked for such OEMs. We provide engineering program management and local account teams for our customers. The charter of the office is to facilitate good communications, problem resolution, and in general just make these projects run smoother for our customers.
MMI: A number of EMS providers can do full product design. Do ODMs like Arima consider these providers as competition?
Greg Memo: With Arima, design is at the core of everything we do. We design for cost, for quality, for manufacturability and for service from the very beginning of a project. Making design so central, we can get lower cost manufacturing and after-sales service because we’re able to design in quality and serviceability.
When you look at the EMS companies, generally they get designs from their customers. So they’re brought in later in the process. They may do some design for manufacturability, but they’re unable to affect the core design of the product. They cannot provide the cost savings and time to market associated with a strong core reference design because they still depend on the customers to do the initial design work.
MMI: But I can cite a case where Flextronics is coming out with a low-cost cell phone design that they want to make available as an ODM would. And they’re not the only provider moving in this direction.
Greg Memo: It’s a natural extension of what I’m describing today. The EMS companies have talked for a long time about bringing design more into the core of what they do. What we have seen to date has been largely the acquisition of companies with design expertise. Design has been more of a value-added service than a core part of the whole philosophy of an EMS business.
I do think that you’ll be seeing some point products coming out from EMS companies. So in the future, you will see ODMs and EMS companies competing in certain product lines. You will also see ODMs competing in traditional markets that have been owned by the EMS industry. So I think there will be some convergence.
Companies like Arima have a big advantage. Their engineering staff is closely aligned with the manufacturing and service teams so there are synergies up and down the line. In contrast, design is more of a relatively new idea to the EMS world and hasn’t been fully integrated into their overall business philosophy.
MMI: You have said that the ODM model is superior to the EMS model. What are the advantages of the ODM model?
Greg Memo: When you design a product up front leveraging your low-cost supply base, high-speed manufacturing lines and service capabilities, there are a lot of efficiencies in the model. What we provide are great design services to deliver a low-cost product. We then augment that design with extremely low-cost manufacturing, which is now primarily being done in our China factory. Then we have an efficient supply-chain and delivery mechanism to direct ship our products to end users or to go through our regional configuration centers in a very cost effective way. These centers also have full after-sales service capabilities.
We’re touching every key aspect of the product from design to manufacturing to delivery to after-sales service. The end result is lowest total delivered cost for our customers.
MMI: You said earlier that the ODMs will be competing in some areas that were traditionally associated with the EMS companies. Can you expand on that?
Greg Memo: An obvious extension would be the telecommunications and networking space, which has traditionally been the stronghold of the EMS companies. In many cases, products in this space are logical extensions to server or desktop-class products we are building today. Another potential opportunity is in consumer electronics, such as gaming devices and set-top boxes. Again, these devices are natural extensions of our current products and capabilities.
MMI: What can you tell me about ODM margins? I’ve always heard that they’re generally higher than EMS margins.
Greg Memo: Margins are very thin for everyone in the industry, and when you look at our margin structure, it’s actually very competitive with EMS margins. What you see, though, is that you get a complete solution from an ODM like Arima – starting with all the design services through the delivery of the product and after-sales service.
The whole idea is to deliver the absolute lowest total delivered cost to our customers and minimize their investment in the product. Our customers’ investment can be minimized through savings in development cost because the OEM doesn’t have to design the initial products and make the prototypes. Or it could come from the efficiency of our supply chain where we direct ship our products to end users and bypass any intermediary touch point. All of these efficiencies result in a significantly higher ROI for our customers.
MMI: One of the common criticisms of ODMs is that they do not have the global manufacturing capabilities that are readily available in the EMS industry. Is this a fair criticism?
Greg Memo: I don’t believe it is a fair criticism because we have regional configuration sites that do CTO, light manufacturing and servicing of our products in all the key geographies. It is true that the main manufacturing of the boards, bare-bone assemblies and, in some cases, final products is done in our China factory or our Taiwanese factories. But we do have a global footprint.
With our core manufacturing being done in Asia, we’re now hearing that the EMS competitors like Solectron and Flextronics are starting to follow a similar model by closing some of their US-based facilities and moving more manufacturing to Asia. So it’s interesting that we’re seeing the ODM manufacturing model being adopted now by some of the EMS players
MMI: Where are the regional centers located?
Greg Memo: We have regional configuration and service centers in Houston, TX for North America; Scotland and the Netherlands for Europe; and Japan. Of course, our big facilities are in Taiwan and China.
MMI: Is Arima planning to expand its manufacturing footprint?
Greg Memo: Our China factory already has 2 million ft2 of space, but there’s room to expand with five more factories on our property. So we do see expansion in China, and we will expand regionally as necessary. Right now, our current centers service our existing global customers, but if there’s a need to expand, we will do that.
MMI: If an ODM and an EMS provider are manufacturing in China, are they not competing pretty much on a level playing field?
Greg Memo: First, let me tell you a little bit about Arima’s facility. It’s in Wujiang, China, a few hours outside of Shanghai. This is an area where the Chinese government has made a major investment in infrastructure. There is a new international airport with a great road system. The government is also providing investment incentives to Taiwanese companies. So not only is Arima in this region, but many of our suppliers have located within miles of our facility. The result is a new and very efficient state-of-the-art supply-chain infrastructure.
One of the key reasons why an ODM like Arima has an advantage over some of the EMS companies in this region is that being Taiwanese Arima understands the Chinese culture and language. We’re able to quickly transfer not only our high-volume products but also our best practices from Taiwan into China. Arima can also help OEM customers sell into the large Chinese market.
MMI: In recent years, ODMs have begun to diversify into other products such as cell phones. What can you say about Arima’s diversification strategy?
Greg Memo: I think there’s a misconception that companies like Arima have a narrow focus on specific products. Arima has invested in a number of key technologies in addition to producing many innovative products. Besides producing such things as notebooks, servers, cell phones and PDAs, we’re also investing in batteries, displays, optoelectronics and photonics.
You mentioned cell phones, which are a success story for Arima. The Arima Communications group has been shipping cell phones for over three years. Arima Communications is one of the leading ODMs in the world for cell phones and will ship millions of phones this year alone.
MMI: Will the HP-Compaq merger have any effect on Arima?
Greg Memo: We’ve had a great working relationship with Compaq for the past seven years. And we believe our excellent track record will continue to serve the new HP well.
MMI: Our impression is that some ODMs have grown through the downturn. What accounts for this?
Greg Memo: This has been a really difficult period for everyone including our customers, not to mention EMS and ODM companies. So growth has been difficult for all of us. What I think is happening, though, is that a lot of large OEM customers are starting to get more familiar with what ODMs can offer and may have even experimented with a product or two at ODMs. Once OEMs do it, the economic benefits are fairly obvious in terms of getting products to market quicker with higher quality for a minimal investment by the OEM customer. In very difficult times, customers have to look at how to make their operations more efficient.
A second part of the explanation would be that EMS companies were definitely more tied to the telecommunications and networking companies that experienced a sharper downturn than many of the ODM customers in the computer space.
MMI: Do you expect to see consolidation in the ODM market?
Greg Memo: This is an industry that is maturing. As happens in all industries when you start to see them maturing, consolidation is inevitable. So I do think you’ll see some consolidation over the next few years.
From Arima’s perspective, we’re always looking for additional opportunities to further strengthen our company. So if something does present itself, we’re certainly going to look at it.
For more on Arima, go to www.arimacorp.com.
Deal Creates $270-million Player
In a $45-million deal, Simclar International Holdings (SIH), a Scottish group that controls two contract manufacturers, has acquired Fullarton Computer Industries, a much larger company that provides electromechanical and box-build services based in Scotland but also in the US and China. SIH bought Fullarton from the UK-based Laird Group. The deal will take the SIH group, whose holdings totaled about $99 million in fiscal 2001 sales, to an expected sales level of about $270 million this year.
Before the deal, SIH owned Simclar International (Dunfermline, Scotland) and held a 72.37% stake in Techdyne (Hialeah, FL), which is listed on the Nasdaq Small Cap Market. Both companies engage in electronic and electromechanical contract manufacturing. Simclar has pursued a vertical integration strategy of sheet metal fabrication, plastic injection molding and cable assembly through PCBA and system assembly. Techdyne’s capabilities include molded cables and wire harnesses, PCBA and system assembly.
Fullarton extends SIH’s market reach into high-volume customers for sheet metal and box build as Simclar’s electromechanical capabilities were more geared to the medium-volume market.
In addition, Fullarton’s electromechanical capabilities will open up opportunities for Techdyne. “There are so many opportunities out there for us. Techdyne will be able to go back to some areas that we’ve shied away from,” said Barry Pardon, president of Techdyne. For example, Techdyne has passed on quoting high-volume white goods and medium-volume instrumentation projects because of the sheet metal that was involved.
Since Fullarton has no capability in PCBA, the deal also gives SIH the opportunity to supply Fullarton with PCB assemblies where cost effective. The same goes for supplying Fullarton with cables and harnesses in the US, where Fullarton cannot produce them in-house.
Fullarton’s European facilities in Gourock, Irvine and Prestwick, Scotland, total over 500,000 ft2. US plants in Houston, TX, and Winterville, NC, together offer 300,000 ft2, and Fullarton also operates a 105,000-ft2 plant in the Tianjin province of China.
The enlarged SIH group now has seven locations in the US, four in Scotland and one in China. Techdyne contributes US locations in Ohio through its Lytton Electronics subsidiary as well as Florida, Texas and Massachusetts. Simclar has an existing facility in Wisconsin besides its headquarters plant in Scotland. The group’s combined work force totals 2600.
Fullarton provides enclosure and chassis manufacture, plastic injection molding, cable assembly and complete product integration. For 2001, Fullarton reported sales of $250 million, down 29% from the year before. Box build labor accounted for 22% of last year’s sales. Fullarton also produces consigned electromechanical parts for its box build operations. Based on projected sales of $270 million for the SIH group in 2002, Fullarton’s sales will decline again this year.
Some 78% of Fullarton’s 2001 sales came from computers, while the telecom and consumer segments contributed 12% and 10% respectively. Fullarton had 10 EMS customers at the end of 2001.
One of them was IBM. When IBM announced earlier this year that it would outsource a significant portion of its desktop PC manufacturing to Sanmina-SCI, Fullarton was already producing IBM’s NetVista PCs under contract in Scotland (Jan., p. 4). The new outsourcing agreement placed Sanmina-SCI in charge of the Fullarton contract. Fullarton continues to assemble IBM PCs at its box build facility in Gourock under Sanmina-SCI’s management.
According to Fullarton, neither its management structure nor day-to-day operations have changed with the acquisition.
In fiscal 2001 Simclar’s sales were about $62 million, while Techdyne recorded 2001 sales of $37.0 million. For the first half of 2002, Techdyne reported net income of $463,044 on sales of $15.5 million. The company’s last two quarters showed sequential sales growth and profitability.
More deals done…Flextronics (Singapore) has completed its take-over offer for NatSteel Broadway and expects to acquire the entire share capital of the company by the end of August (June, p. 2)….Benchmark Electronics (Angleton, TX) has closed on its acquisition of ACT Manufacturing operations in Thailand and the UK (July, p. 4-5)….Elcoteq (Espoo, Finland) and Benefon (Salo, Finland) have reached final agreement for the transfer of three-fourths of Benefon’s R&D Center capacity to Elcoteq’s design subsidiary, Elcoteq Design Center. Elcoteq will pay 11 million euros for the design capacity and intellectual property rights to be transferred (July, p. 6).
Siemens EMC Operations For Sale
Siemens has put its Electronics Manufacturing Center (EMC) operations on the block. The company intends to sell its EMC operations in Johnson City, TN, and South Lebanon, OH. According to the Johnson City Press, the high-mix EMC unit employs about 700 people in its 390,000-ft2 Johnson City plant and about 130 in South Lebanon.
EMC operations fall within Siemens Energy & Automation, and the EMC unit builds for SE&A as an internal customer. EMC also supplies external customers in an EMS business that has grown from zero in 1995 to more than half of EMC’s total revenue.
“Because SE&A and EMC strategies are so significantly different, the time has come to separate the two businesses,” wrote Larry Watford, VP and GM of EMC, in a letter to customers. He added, “The classic conflicts between services and OEM organizations will soon be gone.”
David Jones, marketing and sales manager at EMC, said, “While our fortunes have been excellent with Siemens, we expect even better times ahead as part of a larger EMS provider.”
New programs…Celestica (Toronto, Canada) will become the exclusive manufacturer of Corvis’ terrestrial optical networking products and sub-sea terminating equipment. As part of this agreement, Corvis (Columbia, MD) will immediately begin moving its module-level manufacturing capabilities to Celestica. Corvis plans to keep certain critical manufacturing operations in Columbia, MD, mainly to support NPI, final assembly, system integration, and testing….Elcoteq will produce WISMO wireless modules for Wavecom SA (Issy-Les-Moulineaux, France) at Elcoteq’s plant in Beijing, China. WISMO modules are compact devices that include all of the hardware, software and other technology enabling any equipment to communicate in wireless fashion over GSM/GPRS, CDMA and future 3G networks. Elcoteq expects this contract will have significant impact on 2003 financial results. Wavecom outsources the manufacture, assembly and most testing of its products. The company already uses two EMS providers: Solectron in Timisoara, Romania, and Thales near Rennes, France. WISMO production capacity worldwide from all providers is now over 4 million units per quarter….Danger (Palo Alto, CA) has engaged two EMS providers for its Hiptop Wireless Solution for delivering voice, Web, messaging and entertainment services on a device geared for young adults. Benchmark Electronics is producing the T-Mobile Sidekick, the first Hiptop-enabled device. Flextronics will work with Danger to provide both manufacturing and logistics services. In addition, Flextronics Design will partner with Danger to develop and modify future device designs to carrier specifications.
More new programs…Kronos (Chelmsford, MA) has selected MSL (Concord, MA) to manufacture controller cards for a line of badge terminals. Manufacturing will take place at MSL’s Lowell, MA site. The contract expands MSL’s relationship with Kronos, for whom MSL currently provides PCB design support….Plexus (Neenah, WI) has won new business from some existing customers: KLA Tencor in the semiconductor equipment space, Extreme Networks, JDS Uniphase in the optical components area, and Trintek in the smart card business….SMTC (Toronto, Canada) will provide product assembly and test services for a GSM-compatible subscriber unit from the Global Network Solutions division of L-3 Communications (New York, NY). SMTC’s Chihuahua, Mexico facility will perform the services for this unit, which provides fixed access to either standard or wireless loop GSM networks. Also, SMTC has won new programs in the switching area from Alcatel, an existing customer….PEMSTAR (Rochester, MN) has landed a new contract from Motorola, an existing customer. The provider will supply PCBA and subassembly to Motorola in China….Canada’s Unity Wireless of Burnaby, British Columbia, has chosen Creation Technologies, also based in Burnaby, BC, for volume production of Unity’s power amplifiers, which are sold to the wireless industry….A subsidiary of Flairis Technology (Singapore) has landed a contract to provide turnkey manufacturing services for networking products of Allied Telsyn International (Asia), which is part of Tokyo-listed Allied Telesyn Group. Flairis expects more than $30 million in orders for FY 2003. The provider will also be sole manufacturer of wireless game accessories and other products developed by a joint venture with Japan’s B.M. Nagano, a component trading company….United Defense’s Armament Systems division (Aberdeen, SD) has awarded LaBarge (St. Louis, MO) a $1.75-million contract to produce power supplies for shipboard missile canisters.
Disengaging with Dell… SMTC has decided to terminate its supply agreement with Dell Computer, which represented about 25% of SMTC’s Q2 revenue. The provider found that the Dell programs were not generating sufficient returns and used up too much working capital. SMTC had been ramping new motherboard programs for Dell in Q2. This business “didn’t end up being what we had quoted or modeled,” said Paul Walker, SMTC’s president and CEO, during a recent conference call.
New operations…Jabil Circuit (St. Petersburg, FL) expects that its new 475,000-ft2 facility in Huangpu, China, will be completed by the end of the year. Allowing for government approvals, the company is using the third week of January 2003 as the facility’s on-line date….Also in China, Flairis has set up an EMS subsidiary in Suzhou and expects to commence operations there in September….Venture (Singapore) has established a subsidiary in Hungary to design, manufacture, assemble and distribute electronic products….Stream International, a Solectron company providing CRM services, has selected Watertown, NY, for its next customer interaction center in the US. The new center will employ up to 700 people when fully operational.
Some financial news…Solectron is spending $900 million in cash to purchase $919-million of debt in the form of Liquid Yield Option Notes. As a result the company has reduced its debt-to-capitalization ratio to 35% from 40%. If adjusted for future conversion of $1.1 billion of Adjustable Conversion-Rate Equity Securities into equity, the ratio would be 26%. Three quarters ago the ratio stood at 51%….The Toronto Stock Exchange has approved Celestica’s plan to buy back at its discretion up to 5% of the company’s subordinate voting shares on the open market during the next 12 months….According to the Kyodo News Service, Hon Hai Precision Industry Co. (Tu-cheng, Taiwan), better known as Foxconn, plans to invest up to about $882 million in an R&D center in Taiwan….APW (St. Michael, Barbados), a major builder and integrator of enclosures, has emerged from the Chapter 11 process….CirTran, an EMS provider in Salt Lake City, UT, has been listed on the NASD OTC Bulletin Board.
Elcoteq Embraces Communications
Unlike many providers that are diversifying away from the depressed communications market, Finland’s Elcoteq will increasingly specialize in this sector. The company is also targeting segments of the industrial market. Elcoteq has been working to sharpen its business strategy (May, p. 5).
In terminal products, Elcoteq is most interested in mobile phones and PDAs as well as new home terminal devices. In communications network equipment, the provider will focus on serving manufacturers of mobile phone networks, broadband communications networks and wireless local area networks.
Also, Elcoteq will strengthen its design and NPI services and sourcing capabilities for communications customers. The provider has already set up a design subsidiary and made an R&D acquisition (see News, p. 6).
Elcoteq reported Q2 sales up 6% from the preceding quarter to 425.2 million euros. The Q2 figure represented a slight decline of 2% from Q2 2001. The company recorded a pretax loss of 1.3 million euros in Q2 versus a loss of 13.8 million euros in Q2 2001. For the first six months, sales totaled 827.5 million euros, down 8% from the year-earlier period, while pretax loss improved to 9.4 million euros from a loss of 14.5 million euros in the first half of 2001.
Reporting sequential increases… Reptron Manufacturing Services (Tampa, FL), the EMS division of Reptron Electronics, grew EMS sales in Q2 by over 20% from the preceding quarter to $43.0 million and recorded a Q2 gross profit of $4.4 million. Six-month sales for the division were still down by 17% at $78.8 million….The Electronics Manufacturing business of Varian (Palo Alto, CA) increased June quarter sales by 6% sequentially to $46.5 million. Sales were essentially flat from the year-earlier quarter. The business reported continued good demand from health care equipment companies and industrial customers. Operating margins came in at a record 11.4% as a result of operating efficiencies and unusually low customer start-up costs.
More lawsuits…PEMSTAR is named in two securities class action lawsuits, which make identical claims in statements to the press. The suits allege that the company and certain of its officers and directors caused PEMSTAR’s shares to trade at artificially inflated levels through the issuance of false and misleading statements. After reviewing one complaint, PEMSTAR said it believes the allegations in it are without merit and intends to vigorously defend itself. These legal actions follow similar class action lawsuits recently filed against Flextronics and top company executives (July, p. 8). For the record, Flextronics believes the lawsuits directed against it are also without merit.
To hire IBM workers…Top 50 provider VIDEOTON Holding (Szekesfehervar, Hungary) reportedly intends to absorb most of the employees being cut by IBM’s Storage Products unit in Hungary. Reuters cited VIDEO-TON CEO Gabor Szeles as saying the provider would take on 800 workers out of 1000 to be released by the IBM unit in Szekesfehervar.
Some restructuring actions… According to the AP, Sanmina-SCI (San Jose, CA) will close its plant in August, ME. The plant was originally acquired from Digital Equipment by SCI Systems….In a 10Q filing for the June quarter, Flextronics disclosed that it had identified 5,261 employees to be cut….Suntron (Phoenix, AZ) is shutting down its facilities in Ottawa, KS, and Fremont, CA, to improve its capacity utilization and cost structure….Elcoteq has entered into a preliminary agreement to sell its industrial site in Wroclaw, Poland, to a privately owned French company. The provider decided to withdraw from Poland….Teradyne Connection Systems (Nashua, NH) will close its PCB facility in San Diego, CA.