Toshiba to Establish Joint Venture in China to Manufacture and Market CATV Equipment|
8 June, 1995
TOKYO -- Toshiba Corporation today announced that its cable television home terminal systems have been selected by Shanghai Cable Television, China's largest cable television (CATV) operator, for upgrading CATV services offered to subscribers in Shanghai.
An agreement has been made among Toshiba, Shanghai Cable Television Industrial Company, a solely-owned subsidiary of Shanghai Cable Television, and two other parties, Shanghai Jinling Co., Ltd. and Sunny Ocean Communication (H.K.) Ltd., to establish a joint venture in Shanghai to manufacture and market CATV equipment. Toshiba will provide its manufacturing technologies for CATV equipment to the joint venture. The contract for the new company will be signed today in Shanghai.
Capitalized at US$5 million, the joint venture company, Shanghai Jinzhi Electronics Co., Ltd., will be incorporated in July 1995. Toshiba Corporation will contribute 40% of the paid up capital of the company, Shanghai Jinling Co., Ltd., a leading Chinese CATV equipment manufacturer, 30%; Shanghai Cable Television Industrial Company 15%, and Sunny Ocean Communication (H.K.) Ltd., a Hong Kong-based CATV consultancy, 15%.
The joint venture will start manufacturing PAL format CATV home terminals (set-top boxes) for the Chinese market in later this year at Shanghai Jinling's current facilities in Putong, the high-technology development area of Shanghai. Annual production capacity will be about 500,000. The company is also expected to produce CATV-related products for export. The number of employees will be around 100 by the time production starts.
Shanghai already has an advanced optical fiber cable infrastructure, which currently provides CATV services to 1.2 million households, one of the largest networks in the world. Shanghai Cable Television, plans to upgrade its service by introducing pay channels.
Toshiba is increasing its direct investment in China. Most recently, a semiconductor manufacturing joint venture company, Wuxi Huazhi Semiconductor Co., Ltd. last month started production in Wuxi, while Shenyang Toshiba Elevator Co. Ltd, a joint venture to manufacture elevators and escalators for the Chinese market, will be formally established next month in Shenyang.
Outline of the new company
Name: Shanghai Jinzhi Electronics Co., Ltd. Founded: July, 1995 (planned) Capital: US$5 million 40% by Toshiba Corporation 30% by Shanghai Jinling Co., Ltd. 15% by Shanghai Cable Television Industrial Company 15% by Sunny Ocean Communication (H.K.) Ltd. Location: Shanghai, China Employees: 100 in 1995 Product: PAL format CATV home terminals, CATV-related products.
|Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.|