tbp Electronics B.V. has signed a binding Memorandum of Understanding (MoU) with Alcatel-Lucent in Belgium to buy its manufacturing activities at Geel, with the agreement expected to be completed in the second quarter of 2007.

A new company—tbp Electronics Belgium—will be formed. The terms of the MoU include the transfer of all customer contracts, the 319 employees and manufacturing assets, with the current management of the manufacturing plant taking an equity stake in the shareholders structure of the new company.

The core business of tbp, which is to provide manufacturing and assembly services for high tech electronic products for the telecom, medical, semiconductor and industrial sector, perfectly fits with the external mission of Geel. Therefore, it is envisaged that the formation of tbp Electronics Belgium together with tbp Electronics B.V. will create one of the major electronics manufacturing providers in the Benelux region with an extensive customer base, complementary know-how and expertise with full flexibility for prototyping and low to medium volume production.

Under the terms of the MoU, Alcatel-Lucent will provide a ‘load’ commitment for a minimum of three years and shall consider tbp for its new product introduction activities and/or as a pilot production facility and industrialization centre, including for the transfer of technology to larger volume plants when production processes reach maturity.