HK PCCW, Sinopec To Form JV To Provide IT Svc In China
February 28, 2002
DOW JONES NEWSWIRES
HONG KONG -- Hong Kong-based Pacific Century CyberWorks Ltd. (PCW) and mainland oil company China Petroleum and Chemical Corp., or Sinopec, (SNP) have agreed to form a joint venture that will focus on providing information technology services in China.
Sinopec will hold 55% of the joint venture, while PCCW will own the remaining 45%, the two companies said in a joint release Thursday. Capital contributions to the joint venture will be made in cash by the parents, they said, without specifying the initial investment amount.
A PCCW spokeswoman later confirmed that the total investment in the joint venture will be CNY80 million. The company will have a registered share capital of CNY50 million, she said. (US$1=CNY8.2766)
Target revenue in the coming few years will be CNY200 million-CNY300 million, according to another PCCW spokeswoman.
The joint venture, to be called Petro-CyberWorks Information Technology Co., is expected to facilitate Sinopec's strategy of boosting its competitiveness through the use of IT. At the same time it will strengthen PCCW's presence in the mainland telecom market and will serve as a step towards the company's expansion into systems integration in China.
While the initial focus will be on companies within the Sinopec group, the joint venture will eventually target state-owned enterprises and Sino-foreign joint ventures.
Petro-CyberWorks plans to cooperate with large-scale local and overseas computer companies, while fully supporting Sinopec's IT development and daily operations.
It also aims to expand into the process manufacturing sector and become an IT solutions provider and systems integrator in this sector, both locally and abroad, PCCW and Sinopec said.
-By Anette Jonsson, Dow Jones Newswires; 852-2802-7002; anette.jonsson@dowjones.com
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Updated February 28, 2002 6:21 a.m. EST
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