Motorola Mobility LLC, owned by Google, will stop manufacturing products in China and Brazil. The company announced that it has signed a definitive agreement with Singapore-based Flextronics which will acquire Motorola’s manufacturing operations in Tianjin, China and assume the management and operation of its facility in Jaguariuna, Brazil. The agreement also includes a manufacturing and services agreement for Android and other mobile devices.
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Employees and assets at both locations in Brazil and China will transfer to Flextronics after the transaction closes, according to a statement released by Flextronics.
Mark Randall, senior vice president, supply-chain and operations for Motorola Mobility, said the agreement with Flextronics represents an important step forward in transforming the company’s overall supply chain. Randall said it will be a competitive advantage for Motorola Mobility, as it will enable Motorola to focus on other areas of the supply chain where they think they can add the most value.
The two companies expect to complete closing activities by the first half of 2013, subject to customary closing conditions including regulatory approvals. The financial terms of the agreement have not been disclosed.
