Solectron Corp. and Nortel Networks have signed a new supply agreement that extends Solectron's role as an electronics manufacturing services provider to Nortel.
Replacing a four-year supply agreement the companies signed in 2000, the new agreement defines new terms and conditions under which Solectron, of Milpitas, Calif., will offer Nortel Networks a full suite of supply chain services. This includes design, new product introduction, materials management, manufacturing, product integration and testing, and repair. Nortel is one of Solectron's largest customers.
Reflecting changed industry conditions from when the 2000 contract was signed, the new agreement targets $7.5 billion in revenue from 2000 through 2009, rather than the $10.4 billion in revenue originally anticipated under the 2000 contract.
"We view this new agreement as a step forward in solidifying the strong business relationship that Nortel Networks and Solectron have built over the years," said David Everett, executive vice president, Worldwide Sales and Account Management for Solectron, in a statement.