IRVING, Texas--(BUSINESS WIRE)--July 19, 2004--The Board of Directors of Elcoteq Network Corporation, global provider of electronics manufacturing services (EMS) for the Communications Technology Industry and the largest European electronics EMS provider, announced its plan to build a new plant in St. Petersburg, Russia. Construction of the plant, with an area of 14,700 square meters (158,000 square feet), is expected to begin in the final quarter of 2004, and to be in operation in the fall of 2005.

"From 2005 on we will need more production capacity for mobile phones and communications network equipment. This investment program will safeguard our service capability to European customers, and at the same time it will strengthen our position as the number one communications technology electronics manufacturing services company in the fast growing Russian market," said Mr Jukka Jaamaa, Executive Vice President at Elcoteq.

The investment in land and construction will total approximately MEUR 15 (18.6 million USD). The machinery and equipment needed will be determined by the type of products, production volumes, and timing of product programs. When operating at capacity the plant is expected to employ about 1,500 people.

Elcoteq has operated a manufacturing plant in St. Petersburg since 1997. It currently employs 170 people.

About Elcoteq Network Corporation

Elcoteq Network Corporation is a global electronics manufacturing services (EMS) company that focuses on Communications Technology products. Elcoteq ranks among the world's leading EMS providers and is the largest European company in its field. Elcoteq provides end-to-end solutions and value-added services consisting of design, NPI (new product introduction), manufacturing, supply chain management, and post-sales services for the whole lifecycle of its customers' products. The company operates in 11 countries on three continents and has approximately 12,300 employees. Elcoteq's consolidated net sales for 2003 totaled MEUR 2,235.7 (2.8 billion USD). Elcoteq Network Corporation is listed on the Helsinki Exchanges. Elcoteq Americas headquarters is located in Irving, Texas. For more information contact Bill Coker at 972-401-9995, e-mail bill.coker@elcoteq.com, or visit the Elcoteq website at www.elcoteq.com.

News source: home.businesswire.com
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