Monday, 18 June 2012

Toronto’s Celestica to stop making products for RIM

Toronto’s Celestica to stop making products for RIM
By Josh Rubin Staff Reporter
As BlackBerry maker Research in Motion targets a billion dollars in savings by next year, one of the first casualties is its relationship with Don Mills-based electronics manufacturer Celestica.
Celestica announced Monday that it’s phasing out its contract work for RIM.

“Over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM),” Celestica said in a statement posted on the company’s website. “Celestica has been a high-performing manufacturing supplier for RIM and will work closely with RIM throughout the transition.”
RIM spokeswoman Rebecca Freiburger wouldn’t confirm the Celestica changes, but noted the Waterloo-based BlackBerry maker was targeting savings in its supply chain.
“We do not normally comment on specific supplier relationships. As we outlined in our Q4 earnings call, we are making changes to our supply chain as part of wider efforts to improve the efficiency and cost effectiveness of RIM’s operations to help meet our strategic objectives and to deliver long-term value to our stakeholders,” Freiburger said in an emailed statement.
As part of its fiscal first quarter earnings statement, RIM said it was looking for $1 billion in savings — including in its supply chain — by next year.
Celestica, which began as a manufacturing wing of IBM, has 40 locations in 11 countries. While they wouldn’t comment on exactly what they had been doing for RIM, an industry source said they had previously assembled BlackBerry smart phones, among other work.
Celestica said it would provide more details on the impact of parting ways with RIM in its next quarterly earnings statement, in late July.

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