Elcoteq SE sold Tallinn Manufacturing Operations to Ericsson
V.J. | , 11:46 a.m. Aug. 3, 2009
Elcoteq SE and Ericsson have completed a transaction
on July 31, 2009 whereby the majority of the machinery, equipment and
materials of Elcoteq's Tallinn manufacturing operations were sold to
Ericsson. The transaction included also the transfer of the lease
agreement concerning manufacturing premises and employment agreements
related to these operations.
Approximately 1,200 of Elcoteq's 1,600 employees in
Tallinn were transferred to Ericsson with existing terms and conditions
of employment. Elcoteq will continue operations in Tallinn on a smaller
scale in a specialized plant. Deliveries to Ericsson will continue from
other Elcoteq plants. European high volume manufacturing will be
concentrated in Elcoteq's plant in Pécs, Hungary.