Upon completion of the transaction, Solectron will expand its power, packaging and cooling capabilities and enhance its systems-solutions offering. The companies expect to complete the transaction in June of this year.

Following the completion of the transaction, Shinei, which will be renamed Shinei International, will be an independently operated subsidiary within Solectron’s newly formed Power, Packaging and Cooling unit, and will continue to market its services to other companies separately. Its customers currently include Apple Computer, Hewlett-Packard Company and Cisco Systems.

Once the acquisition is completed, Solectron will gain specialized manufacturing and design capabilities, including custom enclosure design and prototyping, tooling and metal fabrication, enclosure assembly and top-level assembly for the server, networking, desktop PC and printer product markets. Shinei has more than 3,000 employees worldwide and business operations that include locations in Singapore, Malaysia, China, Scotland and the United States. Financial terms of the deal were not disclosed.

We will continue to serve our current customers with the high-quality design and manufacturing they have come to expect, said P.K. Tan, managing director, Singapore Shinei Sangyo Pte Ltd. This acquisition will provide Shinei access to Solectron’s substantial technological capabilities, and will allow us to provide our custom enclosure capabilities to Solectron customers needing total systems solutions.

Solectron’s Power, Packaging and Cooling unit is led by Sean Tzou, vice president and general manager/managing director, Power, Packaging and Cooling. The unit will continue to develop and expand Solectron’s capabilities in enclosure design and manufacturing, backplane assembly, power supply integration, and engineering – all fundamental components of Solectron’s full systems-solutions offering. The unit will include Shinei, as well as Solectron’s strategic partnership with Lite-On Enclosure, a leading PC enclosure supplier that serves Solectron and other customers.

Shinei has established a strong record for delivering high-quality, customer-focused results worldwide, and an ability to drive faster product time-to-market, said Tzou. Shinei’s capabilities will be an important piece of our end-to-end supply-chain solution.

The company said that based on the continual review of its customers’ needs, the time is right to expand its enclosure design and assembly capabilities as part of a complete systems-solutions offering. Solectron expects to continue to add capabilities that will enhance its technology expertise, strengthen its global reach and leverage its business model to better meet customers’ needs.