Tulip Computers is confident of a new lease of life now assets of the ailing Dutch PC maker are due to be acquired by Koninklijke Begemann Group NV, a venture capital company. A deal has been hammered out with administrators and creditors which is designed to ensure that Tulip Computers lives on with secure financial backing. Production problems have been at the heart of Tulip’s difficulties. Faced with tough competition from US and Asian rivals, the company moved last year to a new production plant with a capacity of one million units a year. Software from SAP AG was acquired to ensure a smooth operation that could ensure a build to order model and bring consequent economies. But the move from one plant to another was far from smooth – for a while the two operated in tandem. SAP software is notoriously difficult to implement. And while Dutch management grappled with these problems, subsidiaries around the world struggled to get supply to satisfy demand. Tulip acquired the rights to the Commodore name but supply problems meant it could not capitalize on this asset. Quickly recognizing that production was not Tulip’s strong point, Begemann has signed a deal with Ingram Micro Inc under which it will acquire Tulip’s assembly facilities. The Santa Ana California wholesale distributor will make PCs for Tulip and use the facility as the hub of its European operations. Paradoxically, Tulip has been selling well as the parent operation crumbled under the weight of debts. The UK subsidiary achieved record sales in the first quarter of this year. Now in common with other Tulip off-shoots it is in administration, a situation marketing manager Jonathon Sultan hopes will be quickly resolved now the Begemann take-over is going through. Though it once appeared a victim of US competition, Californian production know-how may give the European PC industry new hope.
