IRVING, TX – EMS firm Elcoteq will take over supply-chain management for Andrew Corp.'s filter business in Europe, a deal worth an estimated $100 million in net sales next year, Elcoteq said. Elcoteq will also pay $12 million for Andrew's manufacturing unit in Arad, Romania.

Elcoteq will be responsible for consolidating and managing the supply chain of Andrew’s filter business in Europe and will start manufacturing and system assembly in Mexico on a turnkey basis. Elcoteq will also acquire Andrew’s Arad manufacturing unit including equipment, work in progress and inventories for 15 million euros ($12 million). Elcoteq will take over the manufacturing unit immediately.

The 1,500 sq. meter leased facility in Arad employs 250 people and provides final assembly, tuning and testing services for network equipment products.

Elcoteq has provided manufacturing and related services for Andrew since 2001.

As a result of the deal, Elcoteq will begin to manufacture Andrew’s products in St. Petersburg, Russia. In the Americas Elcoteq will provide manufacturing and related services to Andrew from its Juarez, Mexico, facility. This business is expected to ramp up during the final quarter in 2006.

“We selected Elcoteq because it is the number one electronic manufacturing services company in the world for the type of products it will manufacture for Andrew,” said Mickey Miller, group president, base station subsystems, Andrew. “Elcoteq has extensive experience in the production competencies required as part of our mixed manufacturing model."