ZURICH, Oct 28 (Reuters) - Swiss electronics company
Cicor said on Tuesday it has agreed to acquire two
production sites from Swiss peer Valtronic in Cleveland, Ohio,
and in Morocco, which gives the firm its first U.S. location and
expands its capacity in the African country.
Cicor did not detail the value of the transaction, but said
it would grow by around 220 employees and gain added revenue of
at least 20 million Swiss francs ($25 million), which could
roughly double thanks to new customers in the U.S. business.
"This move meets the needs of Cicor customers to produce in
the USA," said Cicor in a statement, noting the move would
strengthen its medical technology business in the United States.
"Setting up its own factory in the USA would have involved
considerably higher investment and start-up costs for Cicor."
The Valtronic site being purchased in Berrechid, Morocco, is
in the same building as a facility Cicor acquired from France's
Eolane earlier this year and will double the Swiss company's
capacity at the location, it said.
Swiss companies currently face 39% tariffs to export goods
into the United States. The Swiss government is working to try
to secure lower tariffs with the Trump administration.
The current U.S. tariff rate on Morocco is 10%.
($1 = 0.7931 Swiss francs)
(Writing by Dave Graham
Editing by Ludwig Burger)