As part of an ongoing plan to shift production to low-cost regions,

Celestica

(CLS) - Get Report

said late Tuesday that it sold its facility in Vimercate, Italy, to

Bartolini Progetti

, an Italian logistics and after-market services provider.

Celestica also said it will work as a subcontractor for the Italian company, providing certain electronics manufacturing services, new product introduction, support and after-market services.

"Celestica is committed to having the right balance of capability, skills and capacity to best serve our global customers," said Steve Delaney, CEO of Celestica said in a statement. "This strategy is supported and enhanced through the strengths of our business partners, such as Bartolini Progetti. We are very pleased to be entering into this alliance with the Bartolini team."

Celestica said the new agreement will allow it to have continuing capacity and services capability in Italy for ongoing customer support.

About 850 Celestica employees will shift employment to subsidiaries of Bartolini Progetti.

Celestica stock moved up 40 cents, or 3.6%, to $11.46 during the regular trading day. After hours, shares tacked on another 2 cents.