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Electronic Manufacturing Moving To Ukraine, Romania
Written by Philip Buonpastore
Tuesday, 11 March 2008
EASTERN EUROPE – Industry sources say that Ukraine and Romania
will be the next booming locations for electronics manufacturing,
according to an industry report on Central and Eastern Europe.
According to a report by Technology Forecasters Inc., the Ukraine's labor costs are about one-third of Central Europe's, and
the area has both the available engineering talent and labor force to drive the move.
Ukraine’s Transcarpathia region, which borders several Central European
countries, already hosts two large EMS companies, Jabil Circuit and
Flextronics.
The report also cites concerns about expansion in the area, which
include both corruption and the protection of intellectual property.
"There is a huge corruption problem in the Ukraine and Russia," an
unnamed senior EMS manager reported. "This is just the business
culture. To operate in these areas, American companies must learn that
this is the way of business and accept it if they wish to participate."
Romania was selected as one of the most desirable locations for
low-cost manufacturing operations in Eastern Europe. "We are operating
in Romania nearly at the same cost level as we see in China," said a
senior EMS executive.
Besides Jabil Circuit and Flextronics, Celestica, Elcoteq, and
Benchmark also operate facilities in Romanian, and Nokia has recently
begun manufacturing operations in Cluj Napoca in Western Romania.
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