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Vari-L Company Announces Definitive Agreement With
China To Jointly Manufacture Wireless
Telecommunications Components
Accord Expected to Reduce Manufacturing Costs and Favorably Position
Vari-L to Penetrate Large, Untapped Chinese Markets
DENVER, Nov. 12 /PRNewswire/ -- Vari L Co Inc , a leading provider of advanced
components for the wireless telecommunications industry, today announced it has
executed a
definitive agreement with the Chinese government to jointly manufacture products in the
People's
Republic of China.
Vari-L and the State-run Chen-Hui Co. will manufacture products under a joint
venture that will
be 51% owned by Vari-L and 49% by Chen-Hui Co. Operating from Chen-Hui's
factory in
Beijing, China, the joint venture will manufacture wireless communications components
for
distribution to Chinese and worldwide markets. Products covered under the joint
agreement will
include Vari-L's patented Voltage Controlled Oscillators (VCOs) and Phase Locked
Loop
Synthesizers (PLLs).
Dave Sherman, Vari-L president, said the joint venture will move quickly to meet a
target start-up
of early 1997. He added that the joint venture will reduce manufacturing costs, giving
Vari-L an
advantage in pursuing Chinese and worldwide markets.
"The joint venture's ability to reduce manufacturing costs from current levels should
have positive
strategic implications for Vari-L in China and around the world," Sherman said. "We
intend to
move aggressively to launch this operation and begin participating directly in what we
believe will
be a tremendous growth opportunity." Sherman cited statistics showing that China,
with 1.2 billion
people, has nearly five times the population of the United States yet only 8% of the
telephones.
The agreement calls for Vari-L to contribute a license of its proprietary processes
along with its
manufacturing, marketing and business expertise, while Chen-Hui will contribute plant,
equipment
and labor, and will obtain all necessary government approvals, including assurances of
patent and
trade secret protection.
Through its headquarters in Denver, Vari-L designs, manufactures and markets a wide
range of
RF and microwave signal processing components used in the wireless
telecommunications industry
for commercial and military applications. Vari-L serves a diverse customer base
comprised of
leading technology companies including Lucent Technologies, Ericsson, Hughes, IBM,
Lockheed,
Magnavox, Motorola, Nokia, Northern Telecom, QUALCOMM, Raytheon,
Steinbrecher, Texas
Instruments, Samsung and Mitsubishi.
Some statements contained herein are forward-looking statements. The accuracy of
these
statements cannot be guaranteed as they are subject to a variety of risks including, but
not limited
to, future economic conditions, competitive products and pricing, new product
development, the
delivery of products under existing contracts and other factors. SOURCE Vari-L
Company, Inc. |
