HP outsources more manufacturing
Published: 18 Jan 2002 07:31 GMT
In a move to cut PC operations costs even further, Hewlett-Packard said on Thursday it would outsource more manufacturing worldwide.
HP began outsourcing PC manufacturing in 1993, and has embarked on more stringent cost-saving measures as of late as its profits have fallen along with the demand for personal computers.
The maker of computers and printers has been caught up in a scuffle over a proposed merger with Compaq Computer, with a major criticism being that Compaq's greater exposure to the money-losing computer business would dilute HP's financials. The company has a board meeting scheduled on Thursday.
HP said it plans additional outsourcing of its PC manufacturing facilities worldwide, "in keeping with its longstanding strategy to decrease operations costs."
Among facilities it will consider selling is a site in Isle d'Abeau, France. HP said it is in the process of consulting with the French workers council and that Sanmina-SCI is a potential buyer.
HP said it would also outsource at other sites, as it narrows its focus on supply-chain design, new-product and services development, and customer relationship management.
The company also said the outsourcing would proceed independent of the proposed Compaq merger.
Last week, Sanmina signed a $5bn outsourcing pact with IBM to take over production of the NetVista desktop PC line.
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