Packard Bell NEC and NEC to merge sales outside Japan

Posted on November 10, 1999 
Filed Under CNET, Julian

By Julian Matthews

PENANG–Packard Bell NEC Asia Pacific and NEC will consolidate its desktop PC, notebook and server businesses, outside Japan, under a single entity by the year 2000.

“Managing and operating from the same organization gives certain advantages. Now, we are able to serve corporate customers worldwide under one umbrella. All products and services will be unified,” said Wim Giezenaar, vice president and managing director of Packard Bell NEC Asia Pacific in a statement.

Packard Bell NEC and NEC sales offices in the region operated independently of each other previously.

Giezenaar said the integration of its Asia Pacific operations had already begun in Singapore, Australia and New Zealand this year and will be followed by Malaysia, Taiwan and Hong Kong.

He added, however, that NEC subsidiaries will continue to operate its direct systems integration business in the region separately.

Giezenaar said the company will continue to sell products under the Packard Bell brand name outside of the US, specifically for the home user market, while the NEC brand will be aimed mainly at the private and government sectors.

“Holding two strong brand names, NEC and Packard Bell, for distinctive markets gives us an advantage over our competitors. With the tremendous R&D capabilities of NEC and the fast evolution in telecoms and PC arena, we are very well positioned. Although, the NEC PC related products are not well known in every area in the region or unavailable, this will be changing very soon,” he said.

Packard Bell NEC last week restructured its US unit, cut staff and withdrew the Packard Bell brand of PCs from retail shelves.

Today, NEC issued a press statement that it would set up NEC Computers International BV by year-end to serve its operations outside Japan and China as part of a global reorganization. The company will be headed by new chief executive Michel Fromont who was previously president and chief executive of the profitable Packard Bell NEC Europe operations.

The new entity expects to rake in $2 billion in revenue in the year 2000.

Packard Bell NEC’s Penang plant manufactures Packard Bell and NEC desktops and notebooks for export to Asia Pacific markets outside Japan including Australia, New Zealand and the Middle East.

The company employs about 220 staff in the region.

Published in CNET Asia, Nov 10, 1999.


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