Solectron wins outsourcing deal with optical maker

Arris Group Inc. will close four manufacturing plants in Mexico and Texas as part of an outsourcing contract with Solectron Corp.

The Duluth, Ga., company, which develops and makes optical radio frequency transmission equipment for broadband communication systems, will shut two operations in Juarez, Mexico and two more sites in El Paso, Texas when it moves its in-house manufacturing programs to Solectron, a Milpitas, Calif. EMS provider.

The four facilities, which are slated to close by February 2002, employ 600 workers.

Solectron will perform design, manufacturing, test and systems assembly for Arris' Network Technologies Product Set. Financial terms of the contract were not disclosed.

The outsourcing pact expands Arris' four-year-old relationship with Solectron. Arris, which was formerly known as ANTEC Corp., decided to accelerate its outsourcing activities to reduce costs in the slower economic environment.

"We are confident that Solectron will provide us with a cost-effective solution and flexibility going forward," said Bob Stanzione, Arris president, in a statement.

Arris executives did not indicate when the plant closings would occur or how many workers are affected by the downsizing decision.