Both plants continue to turn out products for Sony. SCI Systems followed close on Solectron's heels by announcing in December 2000 a plan to launch operations in Japan through an alliance with Sohwa Corp., a Japanese partner mainly to provide technological assistance. Celestica kicked off its operations in Japan in November 2000. The Japanese unit is to pass along demanding technical and quality requests by Japanese customers to Celestica's overseas plants. The Toronto-based firm aims to use its global network of 34 plants to produce orders for Japanese clients.
Japanese manufacturers offer high technology and quality.
The success of foreign EMS providers has begun to impact on Japanese high-tech manufacturers. Sony plans to consolidate its 12 domestic plants to launch an EMS business in April 2001. To increase manufacturing efficiency, the new company is to receive orders from both Sony and non-Sony companies. Sony plans to outsource as much manufacturing of nonstrategic products as possible, while continuing to produce strategic products in-house. Matsushita Electric Industrial Co. also announced in November 2000 its EMS plan, which calls for consolidating its manufacturing facilities into multiple factory centers.