Solectron and Nortel extend supplier relationship

Solectron Corporation announced an agreement intended to extend Solectron's role as an electronics manufacturing services provider to Nortel Networks.The new supply agreement, which replaces a four-year supply agreement the companies signed in 2000, defines new terms and conditions under which Solectron will offer Nortel Networks a full suite of supply chain services, including design, new product introduction, materials management, manufacturing, product integration and testing, and repair. Additional product-specific contracts will further specify terms as existing business is transitioned to the new contract and as new business is awarded. Nortel Networks is one of Solectron's largest customers. "We view this new agreement as a step forward in solidifying the strong business relationship that Nortel Networks and Solectron have built over the years," said David Everett, executive vice president, Worldwide Sales and Account Management for Solectron. "We appreciate the opportunity to extend our relationship with Nortel Networks. Our new agreement reflects the realities of today's marketplace and incorporates the full range of value, services and benefits that Solectron can deliver." "Nortel Networks values its relationship with Solectron, and we look forward to continued mutual success under this new agreement," said John Haydon, vice president, Global Supply Management for Nortel Networks. Reflecting the changed industry conditions from when the 2000 contract was signed, the new agreement targets $7.5 billion in revenue from 2000 through 2009, rather than the approximately $10.4 billion in revenue originally anticipated under the 2000 contract. The new agreement positions Solectron to compete for Nortel Networks business over a broad range of product offerings, with actual annual volumes subject to the economic environment and competitive terms and conditions.