MILPITAS, CA -- Zollner Elektronik has started work on a 52,000 sq. ft. NPI center in Milpitas, CA, with production slated to begin later this year.

The plant will be the company's first on the West Coast of the US. Zollner also has an alliance -- and financial stake -- in EIT in Virginia.

The equipment lines reportedly will replicate Zollner's SMT lines at its plants in Germany, and services will be aimed at low- to medium-volume production. The company hopes to bring the plant online by late fall, according to CIRCUITS ASSEMBLY sources.

Zollner had previously considered "eight to 10" Silicon Valley area EMS providers, and earlier this year nearly closed on a deal to buy Santa Clara-based NBS, before deciding on a greenfield, according to multiple CIRCUITS ASSEMBLY sources.

Among the key individuals for the plant are John Burke, general manager; Gene Lindberg, vice president of business development; and Jeff Broadbent, Western Region business development manager.

Zollner is Europe's second-largest electronics manufacturing services company, with estimated annual revenue approaching $1.2 billion.