NEC, Jabil Form Outsourcing Alliance
May. 29, 2003
TOKYO (AP) _ Japanese electronics giant NEC Corp. has agreed to have U.S. computer circuit board maker Jabil Circuit Inc. produce broadcasting systems and video equipment for it and other manufacturers at a plant near Tokyo, officials said Thursday.
Under the agreement, Jabil will produce and assemble broadcasting systems, video cameras and systems for monitoring and multimedia applications for NEC and other companies at NEC's Gotemba plant 60 miles southwest of Tokyo, the U.S. company said in a statement.
The two companies will formally sign the agreement on Monday, said Jabil, which is based in St. Petersburg, Fla.
NEC agreed in February to sell the plant to Jabil as part of the Japanese firm's cost-cutting effort, said Akiko Shikimori, an NEC spokeswoman.
Financial terms of the deal, expected to be completed by July, were not disclosed.
Jabil said it would hire all of about 250 NEC employees currently working at the Gotemba plant.
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