Solectron to Produce Gear for Lucent

MILPITAS, Calif., March 28 -- Solectron Corp. has reached a three-year agreement to produce optical networking equipment for Lucent Technologies. The contract would generate about $2 billion in sales for Solectron over three years.

Under the agreement, Solectron will be the primary manufacturing services provider for Lucent's advanced optical systems, including key Lambda and WaveStar product families. Solectron will provide supply-chain and related services, including enclosure design and manufacturing, optical manufacturing and testing, printed circuit board and backplane assembly, repair services and materials management, and will aid in the redesign of Lucent's optical product supply chain.