Elcoteq-Nokia Speculation Off Hook

Here’s something that will never happen: Elcoteq buying Nokia’s handset manufacturing operations.

Regardless of whether Nokia would sell its production facilities — and it wouldn’t be a complete surprise if it did — Elcoteq won’t be the buyer. The EMS firm has neither the capital nor the inclination. Not only has Nokia pulled in most of its assembly from Elcoteq, but the latter made clear to this reporter earlier this month that it plans to focus on building its industrial electronics business. Moreover, the EMS firm has been scrounging up investments for much-needed operations funding. With the price tag for Nokia’s handset plants (and its ongoing assembly business, no doubt) likely in the hundreds of millions, if not $1 billion or more, Elcoteq simply lacks the funds — and capacity to raise them — to pull this off.

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About Mike

Mike Buetow is president of the Printed Circuit Engineering Association (pcea.net). He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow