China Kejian, Samsung to make CDMA handsets
Tuesday, October 16, 2001
REUTERS
Chinese mobile phone maker China Kejian said on Tuesday it plans to set up
a joint venture with South Korea's Samsung Electronics and two Chinese
partners to produce code division multiple access (CDMA) handsets.
The venture, to be set up in China's southern city of Shenzhen, would have a
combined investment of US$59.78 million and a registered capital of US$20
million, Kejian said in a statement published in the Shenzhen Securities
Times.
Kejian is one of 19 Chinese firms given government approval in August to
produce handsets using CDMA technology, a cellular standard slated to be
put into operation in China at the end of this year.
Kejian would provide 21 per cent, or US$4.2 million, of the venture's registered
capital; Samsung would provide 49 per cent, or US$9.8 million; Shenzhen
Zhixiong Electronics supply 20 percent; and Shanghai Lianhe Investment 10
percent, the statement said.
It did not give details of the total investment.
"The joint venture will introduce Samsung's mature mobile telecom application
technology to develop, manufacture and sell finished CDMA products," it
said, referring to CDMA handsets.
The plan needed the approval of Kejian shareholders at a meeting later this
year, the statement said.
Company officials at Kejian declined to give more details. Those from the
other partners were not immediately available for comment.
Kejian's Shenzhen-listed domestic A shares, off limits to foreign investors,
were suspended from trading on Tuesday morning for the statement.
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