07.20.2011 05:12 PM
Cisco Sells Set-Top Facility to Foxconn
SAN JOSE, CALIF.--Cisco has sold the former Scientific Atlanta manufacturing plant in Juarez Mexico to Chinese electronics manufacturer Foxconn.
The sale is part of the San Jose Calif.-based manufacturer of IP routers’ recent move to slash costs, which includes cutting its workforce by 6,500. Cisco assumed ownership of the 5,000 person facility when it acquired SFA in 2006. The facility manufactures video and telecommunications equipment for the service provider market. The two companies said the agreement positions the companies to further expand their strategic partnership in North America.
"Today's announcement further simplifies and consolidates Cisco's manufacturing operations," said Gary Moore, executive vice president and COO, Cisco. "After working closely with Foxconn for many years, we know they are a strong strategic fit with Cisco's long-term goals and are committed to a successful future in North America. We remain fully committed to our service provider customers and partners, and will continue investing in existing and new video platforms, including set-top-boxes, as part of our Videoscape vision."
The sale is further sign that the company, which has in recent years touted video as the hottest broadband application, is shedding off its video hardware divisions. In April, Cisco announced the sale of its Flip Video compact consumer camcorder division.
The transaction is subject to regulatory approvals and is projected to close by October 2011.
Corrected from previous version, 10:30, July 21, 2011.