April 28, 2005, San Francisco, CA--Fabrinet plans to purchase the JDS Uniphase (San Jose, CA) manufacturing facilities located in Fuzhou, China. Under terms of the arrangement, Fabrinet will acquire all assets and operations related to the Fuzhou plant, including R&D and the manufacture of products such as crystals and precision optics. Subject to final documentation and customary closing conditions, the transfer to Fabrinet is expected to be completed prior to June 30, 2005. Terms of the agreement were not revealed.
The 225,000 square foot Fuzhou plant employs more than 500 engineers, technicians, and skilled operators, all of whom are expected to transfer to Fabrinet and continue their employment at the site. Fabrinet intends to utilize the existing core management and technical expertise at the site to grow its optical component business in China and in other regions the company serves.
Fabrinet has been providing manufacturing services to JDS Uniphase since 2000. In December 2004, the company acquired JDS Uniphase manufacturing facilities in Singapore and Bintan, Indonesia. Earlier this month, JDS Uniphase announced its intent to divest manufacturing facilities in Ewing and Mountain Lakes, New Jersey to Fabrinet as part of broader cost-savings initiatives.
"Transferring ownership of our facility and operations in Fuzhou, China, to our contract manufacturing partner, Fabrinet, is part of our ongoing strategy to decrease cost structure for profitability while streamlining our portfolio along strategic core product lines to increase our corporate agility," said Minoo Zohouri, VP of global materials for JDS Uniphase.
"It is a natural evolution for Fabrinet to acquire the JDS Uniphase operation in Fuzhou," commented Tom Mitchell, founder and CEO of Fabrinet. "We have been manufacturing precision optical components since our inception and have had a long, successful relationship with JDS Uniphase. Expanding our Asian operations to China, and growing our optical component manufacturing operations in that market, will enable Fabrinet to provide greater flexibility and support to our existing customers and additional resources to attract new customers."