Ciscoannounced an agreement with Foxconn Technology Groupfor the sale of its manufacturing facility in Juarez, Mexico.
The agreement is another step in Cisco’s efforts to streamline operations and supports Foxconn's commitment to co-locate with customers in order to better meet their end-market needs. The companies will work closely to ensure a smooth transition and minimize any impact on customers and employees.
Cisco assumed ownership of the 5,000-person Juarez facility with the acquisition of Scientific Atlanta in 2006. The facility manufactures video and telecommunications equipment for the service provider market. The agreement brings Cisco’s video equipment manufacturing in line with the company's overall strategy of partnering with world-class contract manufacturer to deliver the highest-quality products to customers.
The agreement also positions the companies to further expand their strategic partnership in North America.The transaction is subject to regulatory approvals and is projected to close by October.