D2D to add manufacturing capability in USA to service North American customers.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 31, 1995--Riding high on $200 million of European orders, Design to Distribution (D2D) Limited, Europe's largest contract electronics manufacturer, is actively pursuing manufacturing capability in the United States to service its established North American customer base.

The $450 million company, part of the ICL/Fujitsu group, is currently exploring some kind of joint venture or facilities management deal which would be self-financing. However, the company would also consider the option of a new facility or an acquisition.

Growing its presence in the U.S. market is viewed by D2D as critical to its future growth in the $28.3 billion worldwide contract electronics market. Its ambitious revenue target, to achieve $2 billion by the year 2000, is based on adding stateside capacity to complement its 5-site European operation.

Paul Rafferty, director of business development at D2D, said: "The contract market is US-centric, and we believe that to compete we need to offer a global service and to be closer to our customers, many of which are headquartered in the USA.

"We are also conscious that proposed tariff changes, covering imported assembled electronic goods into Europe, may affect our competitiveness in the short term, so the ability to offer a service from both sides of the Atlantic is strategically appealing."

Support for the move from D2D's existing customers has been very positive, particularly from Sun Microsystems with whom D2D secured its first contract for Sparcstation CPU boards back in 1990.

Mel Friedman, vice president of supplier relations for Sun Microsystems, said; "We encourage our contract suppliers to have global capacity because we are a global company and we kind of like to stick with the suppliers that have good performance. D2D's has been exceptional and has resulted in outstanding performance awards for the past three years."

D2D is recognized in Europe as a total quality company. In 1994, the company was awarded the European equivalent of the Malcolm Baldridge Award; its UK printed circuit board plant won Britain's best factory award, and, this year, D2D became the first electronics company to achieve BS7750 accreditation for its pioneering environmental management system.

"We hope to have capability in the U.S.A. by the end of 1995," continued Rafferty. "Then we will be in a position to service our existing customers and win new business in what is a fast-growing market place."

About D2D

Design to Distribution (D2D) Limited is one of the world's largest contract electronics manufacturers and a wholly-owned subsidiary of ICL. With headquarters in the United Kingdom the company employs more than 2,500 people and has sites in Europe, Japan and the United States. Its North American offices are located in San Jose, Calif.

D2D's main activities cover the design, manufacture, assembly, distribution, repair, refurbishment and recycling of electronic goods, from advanced printed circuit boards to multi-million dollar corporate computers. The company also carries out electromagnetic conformance (emc) testing at its underground salt mine facility.

Major customers include Sun Microsystems, Hewlett Packard, Dell Corporation, Borland, Santa Cruz Operation, GTECH, Pace Micro Technology and Madge Networks.

CONTACT: Design 2 Distribution, San Jose

David Lawton, 408/436-3530

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Martin Brooke Associates

Martin Brooke, +44/1223-576295

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