MANAUS CITY, BRAZIL -- Flex will acquire a former Nokia electronics production site here, where it will build smartphones and Xboxes for Microsoft.

Flex (formerly Flextronics) will begin operations at the site in January.

In a statement Microsoft said: “As part of the restructuring of the mobile devices business previously announced, Microsoft has been seeking ways to increase efficiency in operations. After a deep and thorough evaluation, and under the final regulatory approval, Microsoft has decided to sign a contract with our business partner Flextronics for the production of Xbox and smartphones, starting in January 2016. The goal is that Flextronics will keep a similar level of operations in Brazil.”

Microsoft and Flex have been partners on the Xbox since 2001. 

The announced drew protests against Microsoft by students at two local educational institutions acquired by Microsoft as part of its purchase of Nokia. Fundação Nokia, an educational foundation created by Nokia, and the Institute of Development and Technology or INDT (previously Nokia Institution for Development) are reportedly concerned that Microsoft will cancel their funding.

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