OREANDA-NEWS. May 14, 2015. Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Flextronics, have today announced the signing of a letter of intent for the proposed transfer of Alcatel-Lucent’s optical transport manufacturing plant and related assets in Trieste, Italy.

Financial details of the proposed transfer are not being disclosed, and the agreement is subject to statutory regulatory approvals and a final binding agreement.

The Trieste plant is a highly innovative, state-of-the art facility specializing in the industrialization and manufacture of optical transport products for Alcatel-Lucent’s global supply chain and customers throughout the world. The proposed sale to Flextronics will enable it to expand into new markets and diversify its customer base, while retaining and building critical skills and expertise in the field of optical communications.

Subject to the final agreement for the transfer, the Trieste site will continue to supply Alcatel-Lucent with optical transport products, supporting its focus as a specialist vendor of IP, optical transport, cloud and ultra-broadband access technologies.

With annual global sales of approximately \\$26 billion, and a presence in 30 countries and four continents, Flextronics is a leading end-to-end supply chain solutions company, specialized in the delivery of innovative design, engineering, manufacturing and logistics services to a range of industries and end-markets, and in particular, is a clear leader in the manufacturing of networking technologies. Alcatel-Lucent and Flextronics enjoy a long-standing relationship in manufacturing activities.

Commenting on the proposed sale, Roberto Loiola, CEO and Managing Director of Alcatel-Lucent Italia said: “We believe this is an excellent opportunity for Trieste and its employees to expand within a true world leader in which manufacturing technologies and engineering are core competencies. It is our firm intention to enable Flextronics to develop the site into a global center of excellence for optical transport, and one that will play an even bigger part in the manufacture of optics products that will meet our customers’ needs as their networks evolve to all-IP technologies.”

“Flextronics values its long and successful relationship with Alcatel-Lucent,” said Caroline Dowling, president of Flextronics Integrated Network Solutions. “We look forward to expanding our optical transport capabilities and accelerating the growth of our product portfolio with the addition of this business and highly skilled Alcatel-Lucent team that will enable us to deliver even more innovative and competitive products and solutions in the dynamic optical transport business.”