From Earlier: Oclaro Announces Definitive Agreement with Venture
Oclaro, Inc. (Nasdaq: OCLR) and Venture Corporation Limited today announced they have signed and closed a definitive agreement to transfer Oclaro's Shenzhen, China, final assembly and test operations to Venture's Malaysia facility in a phased and gradual transfer of products over the next three years.
During the three-year transition period and in order to continue to provide superior quality and delivery performance to its customers, Oclaro will retain control of the manufacturing facility in Shenzhen, and employees will remain employed by Oclaro. Several of Venture's operational personnel will relocate to Shenzhen to provide support to Oclaro, oversee the transfer, and ensure that products transitioned to Venture's Malaysia facility are fully qualified by customers before the products are phased out of the Shenzhen facility.
Over the transition period, this outsourcing activity is expected to free up in excess of $35 million net of transition and employee retention costs. The two companies have also signed a five-year supply agreement.
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