Teleste has reached agreement with the Chinese governmental cable operator of Gansu Province and Shanghai OTEC Information Technology.
It means the Finnish cabletec firm will have 10% ownership of a joint venture owned by the three parties. The agreements also cover sales development of the Chinese cable market as well as commencing a local manufacturing facility.
The Chinese government has begun an extensive cable network modernization programme. To enhance this development, small independent cable operators have been consolidated into strong provincial-level entities. Typically, such provincial-level operators correspond in size with European national cable operators.
”This collaboration agreement opens up an opportunity for Teleste to further develop our sales in China, where significant investments will be made in advanced cable network infrastructure. Furthermore, the manufacturing facilities of Gansu joint venture will complement our network of contract manufacturing partners by offering cost efficient manufacturing, coupled with the benefits of close partnership. We are looking forward to fast ramp-up of the co-operation in order to respond to the opportunity offered by the rapidly developing market in China”, says Hanno Narjus, Senior Vice President, Video and Broadband Solutions.
In Gansu province, there are significant investments on-going to develop the local infrastructure. The basic pillars of the collaboration consist of Teleste’s advanced technology and product solutions, OTEC’s existing sales network in China as well as Gansu province industrial park with its modern manufacturing infrastructure.
