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Two of the industry's long standing suppliers, Apple Industries Limited of 391 E. Wilson Street, Pontiac, MI
and Tele-Source Industries, Inc. of 1340 Conant Street, Maumee, OH today confirmed their joint venture agreement, designed to expand the reach of their central office circuit pack division. Both companies are long time communications suppliers to both the primary and secondary central office market users. Apple has been
directly involved in purchase and logistics of central office equipment for nearly eight years. The company has developed a proprietary stocking system, a significant database of customers and an extensive inventory sorted by Heci base. This inventory represents more than 100,000 circuit packs from over 50 suppliers including Nortel, Tellabs and Adtran to name a few of many. In addition, Apple has developed an inspection system, continuity testing system and packaging system to conform to industry standards. The director of material stocking in this area is Jim McElmeel. Mr. McElmeel has a long history in inventory control and product distribution. Steven Kay, President of Apple Industries Limited, stated, "Apple has had a successful circuit pack business for several years, due to our excellent buying relationships and strong customer support of our products and pricing."
Tele-Source Industries, Inc. has been a major player in the manufacturing and remanufacturing of telephone
equipment for the last 18 years. The company operates two large facilities in Maumee, OH and features an onsite engineering department headed by Tom Adkins.
Ms. Kerr has developed many strong relationships, both with end users and secondary market suppliers in several different product lines, including public communications as well as the wireline and switch industries. Ms. Kerr states, "We are very pleased with this opportunity to joint venture both material and expertise with Apple Industries. Both companies have strong reputations and are geographically compatible." Distribution of the product will remain at the Pontiac, MI facility, while primary marketing will be shifted over time to be shared by both entities. Purchasing contracts in place at both Apple and Tele-Source will allow a steady stream of new central office equipment to freshen the inventory on a daily basis. Mr. Kay went on to state, "We are pleased about out relationship with Tele-Source and have worked closely with them in other product areas over the years. This new alliance will strengthen the ability of both companies to consistently satisfy the customer base. In addition, through economies of scale, we will be able to expand inventory and customer reach."
The majority of the business the two companies currently enjoy is in North America. One of the goals of the
joint venture will be to expand marketing reach in Central and South America over the next two years. The joint venture will offer flexibility to its customers, allowing them to buy material in various grades and condition, dictated by both specifications and economics. This flexibility will allow end user customers to seek out Apple and Tele-Source to satisfy their circuit pack requirements within the scope of their capital and maintenance budgets.
The joint venture will continue to evolve as the technology does. The future will hold more software driven switches,
enhanced data routers and sophisticated multiplexing equipment. As these innovations become available in the market, both Apple and Tele-Source will move aggressively to find these products at
affordable pricing. This will allow them to continue to provide these materials to a user base that is becoming ever more sophisticated and cost conscience.
In addition, the companies will maintain web sites and customer service facilities designed to provide
information on needed products, the same day they are requested. Please direct any questions you may have to Mr. Kay and Ms.
Kerr at the numbers listed below.
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