Celestica to end RIM contract manufacturing

Contract electronics manufacturer Celestica Inc said it will stop making products for RIM, its largest customer, over the next 3 to 6 months as the BlackBerry maker shrinks its global supply base.

RIM accounted for 19% of Celestica’s 1st qtr revenue, down 16% from a year earlier due mainly to weak demand for BlackBerry products and program transitions at the smartphone company.

Celestica is involved in the production of better-performing RIM products such as the Bold 9900 and Curve 8520 and provides some after-market services from its operations in Mexico, Romania and Malaysia.

Struggling RIM has hired bankers from J.P. Morgan and RBC Capital to help evaluate its strategic options┬×.

Celestica said in April that the volume of business and the locations at which it manufactures products for RIM would likely change.

RIM’s other suppliers include Flextronics International Ltd and Jabil Circuit Inc.

Source: Reuters