SAN JOSE -- Flextronics is terminating "certain arrangements" with Nortel Networks to reduce its exposure to the Canadian telecom company as it winds its way through bankruptcy.

The programs would come to an end by July, Nortel said, without disclosing the products or services or their values. Nor did the OEM indicate whether any of the programs or services designated for termination were near the end of their contract life.

Flextronics is said to provide 75% of Nortel's finished product worldwide. For its part, Nortel was recently among Flextronics' largest five customers, but the EMS firm has been working over the past several months to reduce its financial ties.

In an announcement, Nortel said it would purchase $120 million of existing inventory from Flextronics by July, in addition to other quarterly purchases.

• Prev
• Next