London, UK Around 340 Marconi employees are to be transferred to a new owner as part of the outsourcing the manufacture of its fixed wireless access products and associated operations in Offenburg, Germany, to Elcoteq Network. Marconi is to receive a cash payment of Euro10million.
The agreement is part of Marconi's strategy to continue to reduce the cost and improve the flexibility of manufacturing its products for the telecommunications market.
It is anticipated that 340 current Marconi employees at the facility will transfer employment to Elcoteq with the transfer is due to take effect during November 2003.
Mike Donovan, Marconi's chief operating officer, said, “Marconi will retain our mechanical engineering and logistics operations, and over 100 personnel, at the Offenburg site.”
Lasse Kurkilahti, president and ceo of Elcoteq, said, “This is an important step in the implementation of Elcoteq's communications technology strategy. The products manufactured in Offenburg represent the company's strategic core business and are technically demanding to make. This acquisition further strengthens our radio frequency, system integration and testing expertise.”