UPDATE 2-Celestica CEO sees more acquisitions, expansion

* Sees closing two health-care deals this year

* Each deal potentially worth up to $100 million

* Plans big green-tech expansion late 2010, early 2011

* Sees Ontario solar market as big opportunity (Adds detail, closing stock prices. Figures in U.S. dollars)

By Susan Taylor

OTTAWA, April 22 (Reuters) - Contract electronics maker Celestica Inc (CLS.TO) (CLS.N) said on Thursday it plans to use its healthy cash cushion to fuel growth, including two health-care acquisitions it expects to close in the second half of the year.

Celestica, which earlier on Thursday reported quarterly financial results, also said it plans to launch a big expansion of its green technology manufacturing in late 2010 or early 2011.

"We think the biggest near-term opportunity for us would be working with the Ontario government to provide alternative energy solutions, primarily in the area of solar," Chief Executive Craig Muhlhauser said in an interview with Reuters.

The Toronto-based company, spun off from International Business Machines Corp in 1996, sees big growth in the health-care, renewable energy and aerospace and defense sectors.

Celestica, whose biggest customer is BlackBerry-maker Research In Motion Ltd (RIM.TO), said late in 2009 that it was considering up to four deals in the health-care sector to expand that business.

The two planned acquisitions, potentially worth up to $100 million each, will give Celestica access to attractive markets and customers, Muhlhauser said. A drive to cut health-care costs is expected to spark demand for lower cost equipment, which contract manufacturers such as Celestica can provide.

With $712 million in cash, no debt and an undrawn $200 million credit facility, Celestica has "unprecedented flexibility for investments," Muhlhauser said earlier on Thursday.

The company, which late last year joined the Canadian Solar Industries Association, is also planning a significant green technology manufacturing expansion.

Celestica's renewable business today represents "small dollars," but the company sees a "significant" opportunity with Ontario's generous feed-in-tariff program, which has a local content quota for renewable energy projects.

Celestica, which has been expanding its "green team," could produce solar panels, inverters, energy management equipment and smart grid technology, he said.

"We're bullish that we can be part of the solution to what many people think is a very challenging environment."

Expansion plans mark a big change in direction for Celestica, which for years has restructured and scaled back operations that grew before the tech boom ended.

But Muhlhauser says he expects to be "a boring CEO" because he needs to take a slow and steady approach to growth.

"The next three years is all about trying to move the needed on the big battleship," he said.

"We're sitting here saying there's a lot of opportunity and who knows if we'll do better."

Celestica said on Thursday it is on track to grow sales by 6 percent to 8 percent this year, a big shift from last year's 21 percent decline.

Celestica, one of the five largest contract electronics manufacturers in the world by revenue, forecast second-quarter adjusted earnings of 19 cents to 23 cents a share and revenue of $1.5 billion to $1.6 billion.

Shares of Celestica rose 13 Canadian cents, or 1.2 percent, to end at C$10.55 on the Toronto Stock Exchange and $10.55 on New York.

($1=$1 Canadian) (Reporting by Susan Taylor; editing by Rob Wilson and Frank McGurty)