GSM parts to be locally manufactured in China -- looks like the GSM camp is awakening to its achilles heal (in China).
Elcoteq to Make Mobile Phone Parts in Beijing, Double Sales
Lohja, Finland, July 6 (Bloomberg) -- Elcoteq Network Oyj, a Finnish maker of cellular components, said it will start making parts for mobile phones and networks in Beijing this month, which will help the company more than double sales this year.
Much of the capacity of Elcoteq's Beijing plant has already been sold to Nokia Oyj and Ericsson AB -- the world's No. 1 and No. 3 mobile phone makers - as well as to a third unnamed customer, it said. Production at Elcoteq's factory in Dongguan, Southern China, is also growing, the company said.
Elcoteq shares rose as much as 0.94 euro, or 3.7 percent, to 26.50. They have risen about 70 percent this year on expectations that more phone makers will hire other companies to make components. Elcoteq's sales last year rose 90 percent to 752 million euros ($720 million) from 395 million in 1998.
Cellular phone sales last year rose 65 percent worldwide.
The Beijing plant will manufacture phone parts and network equipment designed to operate under the GSM, or Global System for Mobile Communication, technology standard used in Asia and Europe.
Jul/06/2000 6:33 ET
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