Motorola to shut down smartphone assembly plant in southern Denton County by year end

Motorola to shut down smartphone assembly plant in southern Denton County by yea

In a recent announcement, Google's Motorola Mobility handset division has disclosed that it plans to shut down its smartphone assembly plant in southern Denton County by the end of 2014. The plant - which is in the city of Fort Worth but sits within Denton County - is operated by Singapore-based international contract electronics manufacturer Flextronics Ltd.

The announcement about the closure of the assembly plant comes nearly four months after Google's imminent sale of the Motorola Mobility smartphone business to Chinese device maker Lenovo, in a $2.9 billion deal.

Announcing the closure of the Denton County assembly plant by the end of this year, Motorola Mobility spokesman Will Moss said that the decision to shut down the plant was not related to the acquisition of Motorola Mobility by Lenovo.

About the reason behind the decision to close down the assembly plant, Moss said that Motorola Mobility's flagship Moto X handset has been witnessing weak sales; with the result that the costs involved in running the plant have become too high to keep operations going.

The shuttering of the plant will affect approximately 700 employees who assemble the Moto X smartphones for the US market. After the shutdown of the plant, Motorola Mobility will continue to develop the Moto X in Brazil and China, where the costs for labor and shipping are comparatively low.

Location: 
Company: 

Popular Stories

Facebook preparing to demote slow-loading stories on News Feed

Facebook, the world’s largest social network, is... Read More

Facebook reportedly working on dedicated video chat device

Social-networking giant Facebook is reportedly... Read More

Mario Draghi was right in keeping inflation expectations low

The European Central Bank’s president, Mario Draghi... Read More

Sprint reportedly proposes merger with Charter

Seeking an alternative to a deal with T-Mobile USA... Read More

Barclays results depict bleak picture of South African economy

Johannesburg-based Barclays Africa Group’s... Read More

Barclays Africa reports decline in first-half income

Barclays Africa Group Limited on Thursday reported... Read More