Flextronics will design and build new HP notebook

Finnish EMS firm cancels Russian plant sale to Flex.

By Staff -- Purchasing, 6/24/2008 8:01:00 AM

It was good news/bad news for Singapore-based EMS provider Flextronics. The company announced it has been chosen by Hewlett Packard to design and manufacture a high-volume consumer notebook computer, but Flextronics failed to get Russian clearance for its acquisition of a unit from Finnish firm Elcoteq.

The HP deal was seen as a very positive win for Flextronics. "We are very excited to have been selected by HP to provide services for this significant notebook product," said Sean Burke, president, Flextronics Computing segment in a statement. Flextronics’ computing segment, which provides design, manufacturing and logistics services to computer OEMs, recently increased its notebook original design manufacturer capabilities with the previously announced acquisition of Arima Corporation's notebook business.

After it was announced that Flextronics had not gained clearance from Russian regulators for the acquisition of the St. Petersberg-based Zao Elcoteq plant, Elcoteq said it was in talks with other parties.

Also see: EMS industry grew 17% in 2007