Pirelli-Telstra: new sourcing agreement
Sydney, 22 November 2001 - Pirelli Telecom Cables and Systems Australia Pty Limited and Telstra announced today that they have extended for another three years the current sourcing agreement for the supply of optical and metallic communication cables. This extension positions Pirelli as the main supplier of Telecom cables in Australia.
Demand for cable has been strong during the past three years in Australia, particularly for the traditional twisted pair copper cable. In response to the demand Pirelli has invested in its facility at Dee Why in NSW to increase capacity. Since becoming the major supplier in 1998, Pirelli has supplied to Telstra in excess of 250 million dollars of cable. This agreement, therefore, cements Pirelli's positioning as one of the world's leading suppliers of telecommunication cables, both in terms of capacity and product range, and as number one in Australia and New Zealand.
" We are pleased to extend our relationship with Pirelli," said Telstra's Bill Black, General Manager, Strategic Sourcing, Finance & Administration. " They have shown a strong commitment to Telstra and a willingness to invest to meet our business needs."
Pirelli Telecom Cables and Systems Global CEO Kevin Riddett remarked, " Pirelli looks forward to working with Telstra for another three years. We want to develop long-term relations with our customers, and one of the best ways to obtain this result is to significantly invest in new, advanced technologies."
Pirelli has, in fact, recently introduced a complete range of high-end Fibre To The Home cables and Systems components that are expected to generate much interest and strong demand over the coming months.
The contract confirms Telstra's commitment to expand its national network in order to meet the strong Internet growth in Australia. Major capital works undertaken by Telstra to augment and rehabilitate the network have driven this demand. Telstra's utilization of external contractors has also increased the capacity to complete build programs. Volume requirements for optical cable have been strong over the past couple of years, and Pirelli has invested to meet customer demands.
Pirelli has been partnering with Telstra's Strategic Sourcing Team to finalise the contract. Pirelli's Telecommunication Business Unit Manager, Llyr Roberts, added, " We are committed to continuing to build on the product and service offerings that we delivered during the first contract phase and have many new plans to streamline the way that we do business moving forward to eliminate cost from the supply chain."