CHS signs Trigem in low-end PC contract

OEM Deal with South Korean manufacturer gives distributor access to European sector.

CHS Electronics has entered the low-end PC market after signing ato European sector. pan-European agreement with South Korean computer manufacturer Trigem.

The venture, called The PC Way, is designed to deliver entry-level PCs to dealers across Europe without having to deal with different companies.

In the first deal of its kind for the distributor, Trigem will equip and operate a production and assembly plant, located at the CHS central distribution site in Helmond, The Netherlands.

The plant's annual capacity is expected to be about 1.2 million units.

CHS will provide the logistics and distribution to resellers.

The agreement marks the end of CHS' search for a partner, after revealing several months ago that it was looking to enter into a pan-European agreement with a PC manufacturer.

Trigem, which had also been looking to break into the European market, was selected by CHS following discussions with several other PC manufacturers.

Peter Rigby, director of marketing and communications at CHS, said: 'We have already received a number of enquiries from international customers.

Trigem offers a similar service in the US under the brand name emachines, and we are hoping to pull through a lot of sales from businesses using it in the US and wanting to expand use into Europe.'

In the US, sales of emachines are more than 400,000 units per quarter.

The two companies have yet to decide under which name the PCs will be sold. One option is to adopt the name of Yakumo, which CHS uses to sell its own brand components.

The PCs will initially be offered in three different configurations, starting with processor speeds of 400MHz and prices under £400.

Meanwhile, CHS is also launching into the Australian market after buying Computer Hardware of Australia (CHA) for an undisclosed amount. CHA is the third largest wholesale distributor in Australia with sales of about $65 million last year, distributing to more than 15,000 resellers.