Xerox outsources manufacturing to Flextronics

NEWS In a move to improve its balance sheet further, Xerox has announced Flextronics will take on much of its manufacturing operations. Plants in Brazil, Canada, Malaysia and Mexico will pass to Flextronics following a $220m payment. They will continue to supply office equipment. At the same time two operations in the US - in California and New York state - will be shut, while negotiations take place over the future of plants in the Netherlands and the UK. The decision to hand over production of certain components and products to Singapore-headquartered Flextronics has also been made this year by 3Com, Alcatel and Ericsson, all firms looking to cut costs.