News
MONTREAL – If Flextronics wants to close its Montreal assembly plant, it won’t be without a fight from Teamsters Canada.
The workers union said it would challenge Flextronics’ decision to close the factory and layoff some 700 workers, the Montreal Gazette reported today.
According to the report, Flextronics is cutting staff and moving production to Mexico to cut costs for Nortel Networks, a major customer. The moves wll take place over the next several months, culminating in September.
“We are going to fight until the end to make sure these jobs stay in Montreal. We think Nortel's behavior in this is unacceptable," the report quoted Stéphane Lacroix, a Quebec-based union spokesman.
The report claimed an internal memo stated, "Over (the) coming months, the work done on behalf of Nortel by Flextronics in St. Laurent will transition to Flextronics' Guadalajara facility, to other contract manufacturers and, in some cases, back into Nortel itself."
Ironically, Flextronics purchased the site from Nortel two years ago.
Nortel and Flextronics did not comment for the report.
ST. PETERSBURG – Foxconn Technology Group is making headway toward building an assembly plant near St. Petersburg. The firm has reportedly begun construction on a 12 hectare-site near Kolpino.
The company plans to invest about $50 million on the project and will employ some 5,000 staff at the site, according to reports.
Foxconn Rus and Logopark Kolpino signed an agreement on Feb. 22, which stated Foxconn’s plant will be constructed within Logopark.
A shortage of personnel in St. Petersburg is said to be a serious issue, and is unlikely to be resolved soon. Foxconn said it could introduce social incentives in an attempt to “improve the company’s compatibility in the market,” say published reports.
Plus, the company hopes to help with Kolpino residents currently working in St. Petersburg who commute between the suburbs and the city.
Hewlett-Packard has a stake in the project, and its PCs and laptops initially will be assembled at the plant. H-P’s share in the business is under discussion.
Initially 20,000 PCs and laptops will be produced in Kolpino, with future plans to expand production up to 100,000.
Production is planned for launch at the beginning of 2009.
The company plans to invest about $50 million on the project and will employ some 5,000 staff at the site, according to reports.
Foxconn Rus and Logopark Kolpino signed an agreement on Feb. 22, which stated Foxconn’s plant will be constructed within Logopark.
A shortage of personnel in St. Petersburg is said to be a serious issue, and is unlikely to be resolved soon. Foxconn said it could introduce social incentives in an attempt to “improve the company’s compatibility in the market,” say published reports.
Plus, the company hopes to help with Kolpino residents currently working in St. Petersburg who commute between the suburbs and the city.
Hewlett-Packard has a stake in the project, and its PCs and laptops initially will be assembled at the plant. H-P’s share in the business is under discussion.
Initially 20,000 PCs and laptops will be produced in Kolpino, with future plans to expand production up to 100,000.
Production is planned for launch at the beginning of 2009.
HELSINKI -- Elcoteq will sell its Russian subsidiary ZAO Elcoteq to Flextronics. The deal includes Elcoteq's St Petersburg plant, and is expected to close in 60 days. Financial terms were not specifically noted, although Elcoteq said it would book a one-time gain of about $4.5 million in its second quarter.
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