Rectron revisits distribution strategy

JOHANNESBURG (03/16/2004) - Rectron (Pty) Ltd., one of South Africa's (SA's) largest ICT distribution organizations, has established two new subsidiary companies; Corex IT and IT Depot -- in moves to broaden its national footprint, and accommodate additional brands within its portfolio.

Corex IT has been established in the Kyalami Business Park, north of Johannesburg, while IT Depot is Pretoria-based, with Nelspruit and Pietersburg branches in the pipeline.

Mark Lu, Rectron CEO, says the establishment of the new companies reflects a broadening in strategy for the group, which, after nine years at the forefront of the distribution market, had reached the point where it could no longer accept additional product lines without compromising service and support excellence.

"Rectron has a policy of not carrying conflicting products under the same roof. This has kept us from handling many strong product lines, and dealing with vendors with whom we would otherwise have liked to partner.

"In addition, we needed vehicles to better service dealers and resellers in outlying regions, many of whom are in need of logistical assistance, which will be provided by Corex IT and IT Depot," says Lu.

Significantly, the establishment of the new distribution companies will effectively allow the Rectron group to market brands, such as Asus, Asrock, Thermaltek, Lite-On, BTC, Hyundai and others, which conflict with established Rectron-associated products.

In a related announcement, Rectron has appointed Fred Lu as MD of Corex IT, with Jaco Jonker as financial director and Jonathan Tsao as GM. Donne van Heerden has been appointed GM of IT Depot.

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