International computer distributor CHS Electronics Inc has struck up an agreement with South Korea’s Trigem Computer Inc to establish a joint venture for the production of PCs in Europe. To be known as The PC Way, the venture will concentrate on producing entry-level PCs on a pan-European basis.
Trigem has already equipped and will operate a production and assembly plant in Helmond, the Netherlands, where CHS’ central distribution arm is already situated. The plant will use SAP R/3 software. Capacity is expected to be 1.2m units annually, but there will be additional capacity available for name brand IT vendors who want to outsource PC manufacturing. The first shipments are expected to reach customers this month, under the CHS Yakumo private label. PCs, using processors clocked at 400MHz above, are expected to cost 530 Euros, the equivalent of $550.
Trigem, in partnership with Korean Data Systems, is the manufacturer behind the eMachines brand in the US. Irvine, California-based eMachines launched its first 400MHz systems back in April, with the cheapest model priced at $400 (CI No 3,643). The company made its first shipment in November last year, and by the first quarter of 1999 had vaulted from nowhere to become the number four supplier of PCs by unit in the US, with 300,000 shipments. This quarter, sales exceeded 400,000 units, the company said. Europe is the second largest PC market in the world.
