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December 13, 1987

TANDON TO INVEST SOME OF WESTERN DIGITAL’s CASH IN EUROPEAN FACTORY

By CBR Staff Writer

Tandon Computer (UK) Ltd last week announced firm plans to invest the cash from the planned sale of its fixed disk business to Western Digital Corp (CI No 827) in a European personal computer manufacturing facility. And it wants it up and running by the end of 1988 – but hasn’t yet chosen a country, let alone a site. The facility will produce the entire range of Tandon machines including its recently announced 386 (CI No 792) to be launched at the Which Computer? Show in January. As yet the Redditch-based company has no firm ideas where the factory will be built and says it depends on incentives and costs involved. It adds however that an EEC country is the likeliest choice for the venture which is expected to cost between UKP2m and UKP5m. Tandon hope to see 200,000 machines leaving the European production line annually. Managing director James Minotto was also talking about plans for the coming year. He said that 1988 will be the year Tandon becomes the IBM competitor not the IBM-compatible as it pitches its products at the corporate market. He is looking for turnover in excess of UKP50m in the UK next year, up roughly 67% from a figure last time of UKP30m, representing 40,000 to 50,000 units. In line with that strategy the spec on all 80286 machines will be increased to 10MHz from 8MHz – and the price raised by around UKP300. Minotto says users won’t be put off by the price increase because they want the better performance of a 10MHz machine with the additional option of a Data Pac, Tandon’s external exchangeable cartridge Winchester drive. All AT products are to feature windows and a Data Pac for PS/2 is planned for the second quarter of next year. Tandon is in talks at present to set up a series of seminars in the City in conjunction with Microsoft. 1988 will see more seminars and a cut back to only one exhibition; the Which Computer? Show at Birmingham’s National Exhibition Centre. Minotto could not comment on OS/2 or Microchannel development but said Tandon is in the business of supplying what the market needs. When it demands OS/2 or Microchannel it will be getting them from Tandon.

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