Texas Instruments to Sell Italian Manufacturing Facility; TI and Samsung to Dissolve Joint Venture in Portugal
DALLAS (November 19, 1998) -- Texas Instruments Incorporated (NYSE:TXN) today said that it will sell its Aversa, Italy manufacturing operation and dissolve its joint venture with Samsung, Electronica (Portugal), Lda., in Porto, Portugal.
TI has reached an agreement with Telital, the Italian telecommunications company, for the sale of TI's Materials and Controls (M&C) manufacturing operation in Aversa. Telital plans to continue manufacturing TI's M&C products while it transitions the operation to business opportunities in the telecommunications area. Terms were not disclosed.
The transaction, pending certain closing arrangements, is expected to close by the end of the year. This action is part of M&C's worldwide strategy to maintain a competitive cost structure by consolidating manufacturing into large centers of excellence, subcontracting and outsourcing, utilizing best-cost manufacturing locations, automating high-volume product lines and designing new, lower-cost product lines. The action would also provide Aversa with employment in a rapidly growing area of high technology.
In addition, the Texas Instruments - Samsung Electronica (Portugal), Lda., semiconductor assembly operation in Porto will close. The cessation of operations will begin shortly and is expected to be completed on or before March 31, 1999. The closure will affect the plant's 740 employees. Global market and economic conditions had for some time put the joint venture facility in an unsustainable, uncompetitive position.
These actions in Europe are consistent with TI's continuing commitment to contain costs and increase competitiveness.
TI expects to recognize special charges in the fourth quarter for the Aversa and Porto actions and for greater than expected participation in Japan in the early retirement program that was announced in June as part of a larger TI program.