LUXEMBOURG -- Elcoteq has sold its Russia-based subsidiary to Optogan CJSC for an undisclosed amount.

Under the agreement, which closed May 19, Optogan acquired 100% of the shares in the St. Petersburg-based subsidiary, including the facilities and personnel of about 40 employees.

Customer agreements were not included in the sale.

"The transaction reduces Elcoteq's total costs by approximately two million euros ($2.5 million) on an annual basis and has a considerable positive impact on second-quarter cash flow," the firm said.

Optogan is a manufacturer of LEDs. 

After investing a reported 30 million euros in the site, Elcoteq, the world's seventh-largest contract electronics assembler, had been trying to sell it for at least three years. It had a deal with Flextronics in 2008, but that fell through.

Elcoteq has now consolidated all its European electronics manufacturing and after-market service activities to units in Pecs, Hungary, and Tallinn, Estonia.

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