Miniature antennas maker Sarantel has signed an agreement to outsource its assembly test and supply chain processes to Elcoteq SE, based in Tallinn, Estonia.

Srantel says the agreement is expected to deliver annual production savings of around Ј0.5m, with further savings possible through improvements in the manufacturing process.

Production is expected to begin at Elcoteq in November. The group will consolidate its UK operations from two sites to one, at an exceptional restructuring cost of about Ј50k.

CEO David Wither said, ‘Over the past few years we have significantly improved the manufacturing process for our antennas and by outsourcing the straightforward parts of the process we will benefit from Elcoteq’s expertise, capacity and buying power.

‘We are confident this relationship will open new doors for our technology at a time when interest in our antennas is increasing rapidly.’

Sarantel says outsourcing will allow it to focus more on its three-dimensional photolithographic processes and increase resources for product development.

It will also simplify day-to-day operations by reducing the number of direct suppliers to the group’s remaining operations.