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Elcoteq and Andrew Broaden Partnership
September 14, 2006 |Estimated reading time: Less than a minute
IRVING, Texas Elcoteq SE and Andrew Corporation signed a global, long-term manufacturing supply agreement that is expected to increase Elcoteq's 2007 net sales by about 80 million euros. Elcoteq will consolidate and manage the supply chain of Andrew's European filter business. The company will also facilitate Andrew's manufacturing and assembly in Mexico, on a turnkey basis.
Elcoteq will acquire Andrew's manufacturing unit in Arad, Romania, including related equipment, work in progress (WIP), and inventories. Elcoteq will pay 15 million euros and take over the unit immediately. Located close to the Hungarian border, the 1,500 sq. m. facility employs about 250 people, and will continue to provide final assembly, tuning, and testing services.
Elcoteq has provided manufacturing and related services for Andrew Corporation since 2001. As a result of this deal, Elcoteq also will manufacture Andrew's products in St. Petersburg, Russia; and Juarez, Mexico. The business is expected to ramp up at the end of this year.