Antenna specialist Sarantel has decided to outsource its manufacturing services to Sanmina-SCI as part of the thrust to hit enhanced product demand even as driving internal cost reductions. Both the companies signed the memorandum of understanding (MOU) about the outsourcing and distribution deal yesterday.
From now onwards, The Sarantel antennas will be manufactured at the CEM's Singapore facility. Under the deal, Sanmina-SCI will also acquire some of Sarantel's manufacturing machineries. However, they will not probably acquire Sarantel's buildings or employees.
In March this year through a placing on the Alternative Investment Market (AIM) of the London Stock Exchange Sarantel raised £15 million ($28 million). As per the company spokesperson no lay off is on the card.
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