Commerce One Expands Into China With New Venture
WALNUT CREEK, Calif. (Reuters) - Internet business marketplace developer Commerce One Inc. and seven Greater China businesses have agreed to develop a business-to-business Internet portal for the worldwide exchange of goods and services among businesses.
The deal calls for the partners -- who include Beijing Enterprises, i-CABLE Ventures, Jardine Internet, New World China Enterprises Projects, SUNeVision, Swire Net Ventures and WI Harper Group -- to fund the project with an initial investment of $40 million, Commerce One said.
The seven companies and their affiliates have a trading volume of 20 percent of Hong Kong's gross domestic product, Commerce One said.
The portal will anchor the Hong Kong and mainland China hub of the Global Trading Web -- electronic marketplaces running on the Commerce One MarketSite Portal. The portal will target several industries including aviation, automotive supplies, building materials, computers and components, fixed and wireless telecommunications, hotels, medical and healthcare products, retail, shipping and logistics.
``By forming this joint venture we are ensuring that both suppliers and sellers in the Greater China region are able to fully exploit the unparalleled trading opportunities presented by the Global Trading Web,' Mark Hoffman, Commerce One chief executive and chairman, said in a statement.
``Our joint venture partners comprise a formidable procurement force in the region that fully understands the long-term strategic value of Internet-based trading communities.'
The joint venture partners and their suppliers will be among the first to join the project and will create industry-specific trade hubs linking current suppliers and buyers. The joint venture company will also recruit suppliers and buyers from outside the partners' own company supply chains, Commerce One said.
The new portal venture also will seek other partners in Asia to extend the range of industries represented to include sectors such as petrochemicals and finance.
The Global Trading Web is independently owned and operated by market makers in regions or industries. There are currently over 30 global trading portals, including those operated by Banacci in Latin America, British Telecom, Cable & Wireless Optus in Australia and Citigroup Inc. |
