August 25, 2009 (FinancialWire) — Bankrupt flash memory maker Spansion Inc. (OTC: SPSNQ) (Current Market Cap: $26.21 Mil.) has signed a definitive agreement with Powertech Technology Inc. to sell its final manufacturing facility located in Suzhou, China, and certain related equipment.

Under the terms of the agreement and subject to U.S. bankruptcy court approval, PTI will pay Spansion LLC around $31 million in cash, subject to certain adjustments. Over the six months following the closing and Spansion will transfer 100 percent of its shares in its Singaporean subsidiary, which is the holding company of the Suzhou facility.

PTI will provide final manufacturing services to Spansion at the Suzhou facility under a supply agreement between Spansion and PTI.

According to Spansion, the planned sale is another step in its strategy to focus on its own core competencies and efficiently utilize its assets by shifting to a more variable, outsourced manufacturing model.

The Spansion Suzhou facility is one of four factories in Spansion’s final manufacturing network, with around 565 employees. The plant has been operating in China since 1998.

Sunnyvale, California-based Spansion is a flash memory solutions provider focused on enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications.

Spansion was previously a joint venture of AMD and Fujitsu.

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