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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: BillyG who wrote (12428)4/2/1997 5:49:00 PM
From: John Rieman   of 50808
 
Pirates copy the discs, not the players, but I know you're right about them being wrong on the unit count. Phillips in China supplies 4 of 5 top VCD manufacturers with CD loaders (China Daily)......................

Philips to manufacture disc parts in Pudong

Date: 12/15/96
Author: Li Wei
Page: 5

SHANGHAI -- Dutch multinational Philips recently started a wholly owned company in Pudong New Area's Waigaoqiao Free Trade Zone.

Philips Key Modules (Shanghai) Co, with $22 million in investment, will manufacture and market compact disc parts and other electronic products. Annual output is expected to reach 7 million units.

PKM Shanghai, a division of Philips Key Modules, learned about Waigaoqiao through the Waigaoqiao Xin Development Co, one of three State real estate development companies in the free trade zone.

Philips studied several other cities and was impressed by the supporting services by the Xin Development, a company official said. Ultimately, it chose Waigaoqiao because of the availability of a talented technical labour pool in Shanghai and the import tax incentive in the bonded zone.

PKM Shanghai will supply CD components to major video compact disc manufacturers in China. VCDs are hot household appliances in China.

Four of China's top five VCD manufacturers use Philips CD parts as key components.

Philips is one of the few companies to bring that technology to China. The company plans to manufacture CD-ROMs, recordable discs and digital video discs.

The firm has begun fastidious personnel training for the Chinese staff. Eventually, it plans to use more local products for its components.
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