Elcoteq to Manufacture Cellport Systems' Patented Universal Hands-Free System
DALLAS--March 28, 2001--Contract calls for multi-year outsourced manufacturing in Elcoteq's
Monterrey, Mexico facility
Elcoteq Network Corporation has entered into a multi-year agreement with Boulder, Colo.-based Cellport Systems to manufacture the company's patented universal hands-free system for mobile phones.
Elcoteq's Monterrey, Mexico facility is the sole manufacturer of the Cellport 3000 system, which uses a phone-specific Pocket Adapter and Universal Docking Station to accommodate different manufacturers and models of phones in one vehicle. Cellport Systems is one of the leading providers of in-vehicle wireless communications and telematics systems.
"We chose Elcoteq to manufacture Cellport 3000 because of the company's broad, global experience in building sophisticated and diverse wireless products," said Cellport Chairman and CEO Pat Kennedy. "Elcoteq's sophisticated manufacturing processes will be a successful match for our aggressive product rollout."
Cellport joins Elcoteq's impressive client list, including ABB, Benefon, Ericsson, Motorola, Nokia and Philips.
Cellport will use Elcoteq's dedicated, customer-specific project management team tasked with handling pre-manufacturing services. Elcoteq will also direct materials sourcing and purchase, logistics and manufacturing services for the Cellport 3000.
"The market for hands-free systems is expected to grow rapidly, and Elcoteq is pleased to be working with Cellport to meet consumer demand," said Ilkka Pouttu, president of Elcoteq Inc. "Elcoteq's experience in wireless telecommunications equipment manufacturing, plus our `co-evolution' philosophy helps customers manage the entire lifecycle of their products. This approach supports Cellport Systems in bringing consistently high-quality products to the public."
Kennedy said he predicts the first year of production of the Cellport 3000 will create $20 to $50 million in product revenue with significant, incremental increases in subsequent years. Currently, he said, hands-free systems are a $3 billion market. By 2005, Kennedy said he expects legislation and automotive companies' plans to include hands-free technology as standard equipment in vehicles will boost the market to $7 to $10 billion a year.
Jonathan Lawrence, a research analyst on automotive technology with Dain Rauscher Wessels, reports that approximately 15 million hands-free systems will be sold worldwide this year. By 2005, he predicts demand will increase to 30 to 45 million units per year.
Established March 1999, Elcoteq's 180,000-square-foot manufacturing facility in Monterrey, Mexico, delivered the first Cellport 3000 systems to market in late February 2001.
Cellport Systems Inc. is a Boulder, Colo.-based, privately held company and an industry leader in providing in-vehicle wireless communications and telematics systems. The company's products include the Cellport 3000, the industry's first universal hands-free system. For vehicle-embedded telematics, the company's CP2100 Mobile Network Server integrates wireless IP data, GPS and vehicle bus interfaces with an open application platform. Investors include AT&T Wireless Services, Cisco Systems, Flanders Language Valley Fund, Rock Creek Capital, Alignment Capital Partners and @Road. For more information, please visit the Cellport Systems Web site at www.cellport.com.
Elcoteq Network Corporation is a leading European electronic manufacturing services company providing engineering and manufacturing services, supply chain management and after-sales services to international high-tech companies. The company has three business areas, which are terminal products, communications network equipment and industrial electronics. Elcoteq has manufacturing services plants in Finland, Estonia, Russia, Hungary, Poland, Germany, Mexico, Switzerland and China, as well as customer service centers in Denmark, United States, Japan and Hong Kong. Elcoteq's consolidated net in 2000 totaled 2,200 MEUR and the company has more than 11,000 employees. Elcoteq Network Corporation was listed on the Helsinki Exchanges (ELQAV) in 1997. More information on the company at www.elcoteq.com.