European arm to control NEC global PC units

Japanese hardware manufacturer NEC has entrusted the future of its international PC business to its European arm.

Japanese hardware manufacturer NEC has entrusted the future of its international PC business to its European arm.

NEC announced last week that it would centralise its international divisions under the European unit, which was renamed as NEC Computers International (NEC CI).

The move follows the withdrawal of the Packard Bell brand from the US market. The remaining US NEC unit will come under the aegis of the European operation.

Graham Hopper, managing director of Packard Bell NEC UK, said: "This reorganisation is simply about changing the name of the holding company and placing the US division under the control of the European one. The European arm is much stronger and this part of the restructure is showing that."

"At the beginning of the restructure, the European unit was under the control of the US division. That structure has been flipped. It shows how well Europe has done," he added.

Michel Fromont, president and chief executive of Packard Bell NEC Europe, will continue to head the operation, but on a global basis. Subsequently, he will face the task of reviving the manufacturer's PC business in the US.

Kaoru Tosaka, senior vice president of NEC, said: "With the planned restructuring, we expect the PC business in the US to turn profitable in 2000."

The hardware giant expected to post a loss of almost $150m for its fiscal year 1999.