Sarantel Outsources Antenna Production to Elcoteq
Published on: 13th Oct 2010
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UK based handset antenna manufacturer Sarantel Group has signed an agreement to outsource its assembly test and supply chain processes to Elcoteq based in Tallinn Estonia. The agreement is expected to achieve annual production savings of approximately Ł500 000 with further savings possible through improvements in the manufacturing process itself.
Production is expected to begin at Elcoteq in November and the Group will consolidate its UK operations from two sites to one, with an exceptional restructuring cost of approximately £50,000.
The company said that outsourcing allows it to focus more effectively on its three dimensional photolithographic processes and increase resources for product development. At the same time, it will simplify day-to-day operations by reducing the number of direct suppliers to the Group's remaining operations.
Sarantel will benefit from Elcoteq's buying power to reduce BOM (bill-of-material) costs and from its design-for-manufacturing experience, which will optimise and reduce the cost of the assembly process itself. Elcoteq provides Sarantel with a respected manufacturing partner that has already helped it to gain visibility with prospective customers.
David Wither, CEO of Sarantel, said "This is an important milestone in the development of Sarantel's technology. Over the past few years we have significantly improved the manufacturing process for our antennas and by outsourcing the straightforward parts of the process we will benefit from Elcoteq's expertise, capacity and buying power."
"We are confident this relationship will open new doors for our technology at a time when interest in our antennas is increasing rapidly."