OREANDA-NEWS. June 17, 2009. The Finnish electronic componets subcontractor Elcoteq will sell most of its Tallinn assembly unit to Ericsson. Elcoteq will only keep about 400 of its present staff of 1,600 in Tallinn to make special products, STT reported.

Elcoteq said that most of the staff that will pass to Ericsson will continue working at the present terms. The value if the transaction, including equipment, materials and rental of the premises, is about 30 million euros.

The deal should enter into force at the end of this July after an okay from the competition authority.

Orders to Ericsson will continue form other Elcoteq facilities.

Elcoteq January annoumned restructuring of its company in connection with the cooling of the global economy.