Alcatel to sell Texas plant to Sanmina

Alcatel has signed a letter of intent to sell its 320,000 square foot manufacturing facility in Richardson, Texas, to San Jose-based Sanmina Corporation. Financial terms were not disclosed, but the deal--expected to close in September--includes a multiyear supply contract for Sanmina.

Alcatel originally disclosed in February its intention to sell off this facility, which is ISO 9001- and TL 9000-certified. It employs 450 workers who produce mechanical sub-assemblies and circuit boards for optical network components, including the 1631 LMC wideband digital cross connect, the 1680 optical gateway manager, and the 1680 OGX optical gateway cross connect. Alcatel has about 130,000 employees worldwide.

Sanmina will continue the manufacture of these components on a contract basis, according to an Alcatel spokesman.

Alcatel said it is selling the plant to improve its cash flow and to concentrate its resources on bringing new products to market and on providing the latest technology that its customers require.

“As far as new product introductions, [they will encompass] all the products we work on here; optical products, broadband products, products for the carrier marketplace. Other than that, I really can’t get more specific,” said the spokesman. “It will be things customers want and need, and hopefully we’ll be shipping to them even sooner.”

Founded in 1980, Sanmina is a contract manufacturer of electronic components—including circuit boards, assemblies and sun-assemblies—used by original equipment manufacturers in the communications, computer, medical, and industrial instrumentation industries.