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GEORGE TOWN: THE sale of Motorola Solution Inc's production facility at the Bayan Lepas Free Industrial Zone, here, to United States original equipment manufacturer Sanmina Corp may see some job losses.
Business Times has learnt that while Motorola's production facility is set to be sold to Fortune 500 firm Sanmina, its research and development (R&D) operations will continue in Malaysia.
"The plant in Penang is the last of Motorola's production plants globally to be sold and there could be a 25 per cent reduction from the total 3,000 head count, here," industry sources said.
Motorola Solutions last year announced it had invested more than US$20 million (RM83 million) fitting out its R&D centre in Penang, where Malaysian engineers have been working on developing next- generation solutions for its communications and mission-critical products.
The local R&D operations serve as Motorola's largest R&D facility outside the US.
Motorola's investment presence in Penang dates back to 1974 and the company's cumulative investments last year were said to be in excess of RM4 billion.
It is learnt that once the sale of the production facility is concluded, the plant will carry Sanmina's name and a transition period is expected before any changes in headcount take place.
Sanmina officials are said to be in Penang and will address Motorola employees today.
Based in Schaumburg, Illinois, Motorola makes radio equipment for emergency workers. Its customers include the US government, other governments and global carmakers.
Motorola Solutions is the product of a 2011 break-up of Motorola Inc, a company that was founded in 1928 as Galvin Manufacturing Corp to make a device that allowed battery-powered radios to run on household electricity.
The break-up, which came after investors led by billionaire Carl Icahn sought to shake up the company's performance, resulted in its mobile-phone unit being spun off as Motorola Mobility Holdings Inc.
That business was later sold to Google Inc, which itselft last year sold the handset business to Lenovo Group Ltd.
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