(IBM) - Get Report

will outsource the manufacture of its NetVista personal computer line to


(SANM) - Get Report

in the U.S. and Europe.

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Under the three-year, $5 billion pact, IBM will continue to manufacture its ThinkPad notebook computer and retain its NetVista operations in Guadalajara, Mexico, although the Mexican operations could eventually be transferred to Sanmina as well.

Sanmina will acquire an IBM plant with 900 workers at Research Triangle Park, N.C., and an 82-employee facility in Greenock, Scotland. The transferred workers will be offered positions with Sanmina at the same salary.

IBM said it entered the agreement to lower its cost structure while still offering a competitive line of PCs. The company last week said it had sold its digital transceivers business to

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