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Electronics Production | October 20, 2005

Rutronik and Microchip expand deal

Rutronik Elektronische Bauelemente GmbH and Microchip are expanding their existing 10 years cooperation in Central and Eastern Europe with further franchises for UK, Slovenia and Rumania.

This means that with immediate effect Rutronik will also be acting in Europe's second largest distribution market, namely UK, as a sales channel for semiconductor manufacturers. With this move, Rutronik is taking a further step towards harmonising its line cards in Europe. Rutronik is accompanying its debut in UK with a special Microchip launch programme, which offers a selection of development tools for micro-controllers and analogue products at special prices of 30 to 50 percent below list price. The object of this distribution agreement is the entire Microchip product range with 8 and 16-bit micro-controllers, high-end analogue products in the fields of Thermal Management, Power Management, Linear, Mixed Signal and Interface, plus serial EEPROMs. The special advantages offered by Microchip include the cost-efficient and simple-to-use development environment, which also belong to the Rutronik portfolio. In Central Europe, broadline distributor Rutronik has successfully positioned itself as the number 1 distributor, achieving two-digit rates of growth with Microchip products. The strategy of both companies is clearly directed at expansion. Rutronik has recently clearly forced its pan-European presence and also increased its manpower in UK to over 40 employees, a figure which also includes product managers and field application engineers specially trained in Microchip products. Following on from this, Rutronik regards this franchise expansion with Microchip as the next logical step in a successful cooperation and its recent expansion activities. "The cooperation with Microchip ties in well with our plans, since our strategies with regard to pan-European interests are entirely in sync with each other," emphasises Thomas Rudel, Managing Director Sales and Marketing at Rutronik. "We are highly confident that we will develop our business relationship further in future." Microchip is hoping for substantial support from this franchise expansion in order to realise high growth rates in the medium term and, to achieve this, will be relying on a full-coverage distribution network in Europe. "Rutronik has already demonstrated in Central Europe that our products are best-sellers. We anticipate that our partner will exploit this sales potential to the same effect also in the newly added regions of UK, Slovenia and Rumania", says Roswitha Kumpfmüller Sales Manager EU.
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