ATVIDABERG, SWEDEN -- Biotage has signed a long-term outsourcing deal with EMS firm PartnerTech worth some SEK 40 million ($6 million) annually.
Biotage, which makes life science instruments, has been outsourcing to PartnerTech for a number of years. Under the new agreement, which runs through 2011, PartnerTech will take over most instrument manufacture, currently located at Biotage's plant in Charlottesville, VA.
"After many years of close cooperation, we know that PartnerTech has the experience and organization required to handle an assignment of this magnitude," said Torben Jörgensen, president and CEO of Biotage. "We are very pleased with PartnerTech's production capacity and rapid response time. We have also benefited greatly from PartnerTech's product development division, which has made our instruments more competitive."
Under the deal, Biotage's instrument manufacture will be moved from its plant in Charlottesville to the PartnerTech customer center in Åtvidaberg. After the relocation, PartnerTech will manufacture nearly all Biotage instruments. The product transfer will begin immediately. Initial deliveries will be made in June, and the transfer is scheduled for completion in the third quarter.
PartnerTech is the 37th largest EMS firm according to the CIRCUITS ASSEMBLY Top 50, with 2008 sales of about $312 million.