At an official opening ceremony for Xingwang (International) Industrial Park in Beijing's Economic and Technological Development Area, Nokia and its China partner Capitel Group today announced plans to double the Park's capacity. The company at the same time inaugurated a major production facility on the site for its joint venture company, Beijing Capitel Nokia Mobile Telecommunications Ltd. (BNMT).
At a ceremony to mark both events, Beijing Mayor Liu Qi and Nokia's Chairman and CEO, Jorma Ollila, signed a memorandum of understanding (MoU) for the second phase development of the Park. Under the MoU, Xingwang will expand from 50 hectares to 100 hectares and bring in an additional 15-20 international and local component suppliers, service providers and R&D institutions in the coming years.
Following Nokia's establishment of a new global R&D Center in China in November, the Park creates another milestone strongly demonstrating the company's localization strategy and long-term commitment to China. Development of the Park will also enhance the global competitiveness of Nokia's joint ventures and partnerships in China as well as create more than 15,000 jobs.
Speaking at the opening ceremony Ollila said: "We are delighted to be building this world class high-tech industrial base in China as an important part of Nokia's global manufacturing and R&D network. Xingwang not only underlines our successful cooperation with the Chinese government and partners, but also represents a unique and optimized business model that will enhance our global competitiveness in this market and provide growth opportunities for all parties in the value chain."
With BNMT as the key growth driver, the Xingwang Park is expected to develop into a leading telecommunications manufacturing and export base bringing in investments of more than 10 billion yuan in the coming months and with expectations for investment levels to double as the park moves towards capacity. After reaching full capacity, annual sales for the Park are estimated to grow to over 50 billion Yuan, involving more than 30 international and local players.
EDITORS NOTES
About Capitel Group (PTIC)
Capitel Group is the former Beijing Telecommunications Equipment Factory under China Putian Corporation established in 1941. Today it has developed into one of the largest high-tech enterprises in China for R&D, manufacturing and selling telecommunication products. It recorded 20.1 billion Yuan in sales revenue in 2000 and was ranked seventh in the China Electronics Top 100 in 1999. It is a equipment supplier and system integrator for products including mobile communication systems, mobile communication terminals, transmission systems, IP telephone system, communication power, broadband access products, wiring equipment and antenna for a wide range of customers in China.
About Beijing Capitel Nokia Mobile Telecommunications (Co.,) Ltd
Beijing Capitel Nokia Mobile Telecommunications (Co.,) Ltd. (BNMT) is a 50/50 joint venture between Nokia (China) Investment Co., Ltd. and the Capitel Group. BNMT manufactures both mobile phones and cellular systems, and is a telecom manufacturer providing complete GSM systems on a large scale. In addition, it is one of the largest joint ventures in China. Since its establishment in 1995, BNMT has achieved strong performances with sales increasing from less than 1 billion Yuan in 1996 to nearly 18 billion Yuan in 2000. (Furthermore, since 1999 BNMT has become a leading company on the international scene with exports making up a considerable portion of revenue.) Today over 50% of the production of BNMT is exported to Europe and Asian countries. It was ranked first among foreign invested companies for exports in 1998,1999 and 2000 in Beijing. BNMT is also a leading tax contributor in Bejing.
About Nokia
Nokia is committed to long-term development and preferred partnership in China. With innovative technology, Nokia has continuously strengthened its market position as a leading supplier of mobile and broadband network systems and mobile phones in China. China is Nokia's second largest market in the world. Nokia's investment in China had surpassed USD 1.7 billion by end of 2000. Nokia has established over twenty offices, eight joint ventures and two R&D centers, with over 5,500 employees in China.
Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.
About Xingwang Park
BNMT started production at Xingwang Park in September 2001, 15 months after the ground-breaking in 2000.
Today over 50% of BNMT production is exported to Europe and Asian countries and the company continues to target this level in the future.
The first milestone of 10 billion Yuan investment into Xingwang Park will be reached in the coming months. The amount of investment is expected to double in the coming years.
Once phase two development is in operation, Xingwang Park will provide about 15,000 jobs
For the first phase of development, a total area of 50 hectares was allocated to 15 suppliers. According to the phase two development plan, Xingwang will reach 100 hectares involving over 30 domestic and international suppliers and service providers.
Further information:
Nokia Corporate Communications
Tel. +358 7180 34459
Fax +358 7180 38226
E-mail: communications.corporate@nokia.com
www.nokia.com