Lucent Technologies Inc. announced it signed a three-year agreement with electronics manufacturing services company Celestica Corp. giving Celestica exclusive rights to manufacture Lucent’s existing and new wireless products, according to a Securities and Exchange Commission filing.
“The agreement with Celestica is part of our effort to optimize and streamline our supply base so that we can become more operationally proficient and profitably grow our business,” said Mary Ward, a Lucent spokeswoman.
Other vendors also have been streamlining their manufacturing processes. Nortel Networks Ltd. is in the process of outsourcing most manufacturing to Flextronics Corp., and Motorola Inc. in recent months has been working to make its handset manufacturing process more efficient.
Lucent’s Ward said of the four vendors that were the primary suppliers for Lucent’s mobility infrastructure products, Lucent would continue working with two of those vendors, Celestica and Milpitas, Calif.-based Solectron, another EMS provider.
Ward added that although Lucent plans to continue doing a limited amount of business with another EMS provider, San Jose, Calif.-based Sanmina-SCI, the company does not plan to continue working with Jabil Circuit, a St. Petersburg, Fla.-based EMS provider.
Lucent’s agreement with Celestica became effective immediately after the SEC report was filed.
Terms of the agreement were not disclosed.
