SMTC signs agreement with Leitch Technology
Jun 21, 2005
SMTC Corporation (NASDAQ:SMTX/TSX:SMX) announced it has entered into an agreement with Leitch Technology International Inc., a subsidiary of Leitch Technology Corporation (TSX: LTV) to provide certain manufacturing services.
To improve margins through lower supply chain costs and increase its manufacturing flexibility, Leitch recently selected SMTC as its manufacturing partner by outsourcing the majority of its Toronto-based board manufacturing activities. The agreement is expected to achieve an estimated annualized run rate of $20 million USD for SMTC.
"Making the right decisions about which processes we can do ourselves and which can be better done outside the Company is a critical part of our drive to become a cost leader," said Tim Thorsteinson, President and CEO of Leitch Technology. "SMTC demonstrated a solid understanding of our industry, our business model and our business goals, and acted as a true partner in helping us develop a plan to enhance the effectiveness of our supply chain and achieve our gross margin improvement objectives."