Ingram to close Comms division

Jay Miley, VP and managing director Ingram Micro A/NZ, said following a strategic review of its business units it will close its communications division on 1^st July.

The closure will affect 21 people and VTech Australia is in discussions with staff from the division regarding employment opportunities with the company.

Matt Sanderson senior director and general manager, Volume Business Unit & Consumer Ingram Micro A/NZ, said VTech is "talking to every single one" of their employees from the division.

The division had numerous sales people across the country but its office, which is based in Sydney, will now close.

Sanderson said employees will be given alternative premises if they choose to stay with  VTech.

Miley said globally the company has been focusing on what's core to Ingram Micro's business and on areas it wants to expand into.

"After looking closely at our communications division and talking things through with our partners, Telstra and VTech, we collectively decided the most sensible thing was to support VTech in establishing a direct representation in Australia and help in managing a clean transition process," he said.

VTech Telecommunications (Australia) will distribute all Telstra-branded fixed line products from the date of the division closure.

"We're really excited about this opportunity to establish a direct presence in Australia," said C.H. Tong, president of VTech Telecommunications.

"We believe it will allow us to deliver an even higher value proposition to Telstra's customers, including more immediate access to new product designs and technologies."

VTech supplies products to various Telco brands including Telstra, BT and T-Home.  It is one of the world's largest suppliers of corded and cordless telephones.

Sanderson said its business with Telstra was a part of the Tech Pacific acquisition in 1999.

"We have been working with VTech for months on this agreement," he said.

"Ingram Micro decided Telstra was not a core focus for the business. It was a niche part of our business so we have been working with VTech to support them on the transition."

The agreement between Telstra and VTech will end in 2012.