JUAREX, Mexico, Dec. 20 -- Electronics manufacturing services firm Elcoteq Network Corp. will buy consumer electronics giant Thomson's Juarez operations and take over its manufacturing in a deal worth over $1 billion.

Under the deal, expected to close Dec. 31, Elcoteq will acquire Thomson's manufacturing operation here, the companies annnounced today. Elcoteq is paying $33 million for the plant, which makes set-top boxes.

Elcoteq also signed a deal to build set-top box products for Thomson in Juarez. Thomson reportedly owns a 30% share of the global set-top box market.

Elcoteq expects the deal to boost the company's sales by approximately $300 million during 2005 and by $800 million to $1 billion during 2005 to 2007.

The acquisition of the Juarez plant will double Elcoteq's manufacturing capacity in Mexico. The Juarez personnel will be retained. Currently, the plant employs 2,000 workers.

In a statement Finland-based Elcoteq said the acquisition is part of a larger plan to balance its global footprint. The company earlier announced announced an expansion into Brazil.

"The Americas is the fastest growing geographical region within Elcoteq, and the addition of Thomson as a significant new customer both accelerates this growth and diversifies and expands the product and service portfolio within Elcoteq Americas," said Doug Brenner, president of Elcoteq's U.S. subsidiary.