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Electronics Production | September 26, 2005

Rutronik strengthen presence<br> in Nordic, Benelux, UK

RUTRONIK Elektronische Bauelemente GmbH has significantly boosted its pan-European presence. In the Nordic, UK and Benelux distribution regions, a total of around 80 former Eurodis employees from the fields of distribution, marketing and FAE (field application engineers) will be strengthening the RUTRONIK team.
In addition, by acquiring the Eurodis order book in the Nordic region, the broadline distributor RUTRONIK has gained the entire backorders of the insolvent distributor in Scandinavia. As such, RUTRONIK is represented in Nordic and UK by over 40 employees in each region and in Benelux by over 20 employees, and has established an area-wide presence in Europe. With these acquisitions, RUTRONIK is substantially reinforcing its position as Europe's number three in the distribution landscape and as the only European company of this magnitude.

The local subsidiaries operate largely independently and offer their customers expert support on site through local distribution, FAEs and product marketing specialists. The company's declared aim in making these new acquisitions is to boost its turnover to over EUR 500 million by the year 2006.

For the Nordic region encompassing Denmark, Sweden, Norway and Finland, this move signifies a clear expansion in terms of distribution operations. To date, RUTRONIK had only operated in Denmark with a small representative office. With the newly appointed team, the company is aiming to achieve a successful start similar to that achieved in Italy, Europe's number three distribution market.

Last year, RUTRONIK achieved a rapid start in Italy with 55 employees. Also in the UK, RUTRONIK increased its personnel presence to some 40 employees, including changes in the management. "We are aiming to become a key player in Europe's second largest distribution market, namely Great Britain", explains Helmut Rudel, Chairman of the Management Board and Founder of RUTRONIK commenting on this. The distribution representation has also been greatly expanded in Benelux. "As part of our expansion activities, we will also be working flat out on further harmonising the franchise situation in Europe and on expanding this with further interesting manufacturers", continues Helmut Rudel.

"This move will strengthen our product portfolio and give our business potential a further boost." In an initial step, we have already succeeded in signing a Europe-wide agreement with Epson Europe Electronics and an array of manufacturers from the electromechanics sector. Sharp has also been added as a manufacturer. Further intensive negotiations are currently underway and are expected to reach the conclusion stage in autumn.

In the wake of the current changes in the European distribution landscape in favour of large group conglomerates, and as the only European amongst the top 3, RUTRONIK sees itself has having a position of special responsibility towards its customers: "We think and act with Europe in mind. And it is precisely for this reason that we shall be continuing to focus firmly on assuring a balance in Europe's component distribution landscape as well as fair competition. Thanks to our recent investments, we are already well on the way to achieving this."

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