Arrow Electronics Expands Supply Chain Services in China

OEM customers can now have products assembled in China, placing the finished product closer to Asian market

Melville, New York — June 29, 2006 — The North American Components (NAC) business of Arrow Electronics Inc. has established a new manufacturing, logistics and supply chain partnership with China Great Wall Computer Group, a manufacturing company owned by China Electronics Corp. (CEC) in Shenzhen, China.

Through this partnership, Arrow's original equipment manufacturing (OEM) customers will be able to have their products assembled at a China Great Wall facility, placing the finished product closer to customers in the Asian market. Arrow said OEMs can expand their reach into this market with minimal risk and cost because they no longer have to ship components from suppliers in Asia to the United States for product assembly and then ship finished products back to Asia for distribution to local markets. Arrow selected China Great Wall as a partner based on its reputation for quality and its ability to replicate the services offered at Arrow's Logistics and Value Added Center in Phoenix, where OEM customers' products are manufactured today.

Arrow can now ensure that customers who want to manufacture their products overseas will have their established manufacturing practices replicated exactly, which eliminates the need to conduct inspections at multiple manufacturing sites, said Steve Ramsland, vice president and general manager, Arrow OEM Computing Solutions. Our global customers now have a cost-effective way to penetrate the Asian market while maintaining the same quality standards they are accustomed to in North America.

Both the China Great Wall manufacturing facility in Shenzhen and Arrow's Logistics and Value-Added Center in Phoenix are ISO-certified, and have power manufacturing capabilities, cleanroom facilities and a lean manufacturing culture. In addition, they both offer the following services: engineering and design, first article and proof of concept, inventory management, build-on-demand, verification and testing, and advanced order fulfillment.

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