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Nokia Begins Production of CDMA Handsets in China
Posted: 31-Mar-2003 [Source: Nokia]

[Nokia set to begin CDMA handset production in China and announces merger of its four existing joint ventures in that country with the new headquarters in Beijing.]

Nokia announced today that it would merge its four existing joint ventures in China in a move that would substantially strengthen the operational efficiency and competitiveness of its China operations. In addition, Nokia also announced its plan to begin production of CDMA handsets.

The merger represents a major milestone for Nokia in China - it demonstrates Nokia's long-term commitment to China and underscores the successful collaboration between Nokia and its Chinese partners.

With state-of-the-art technologies and Nokia's increased investment in research and development in China, the new company is well positioned to lead China's mobile handset and network markets as well as improving its competitiveness in the global market.

The new company will be headquartered in Beijing with branch offices in Dongguan and Suzhou, and will continue operations in each of the previous joint venture locations. In addition, parties agree that pending government approval, the new company will begin production of CDMA handsets, using Nokia chipsets. The new company represents one of the largest foreign invested enterprises, as well as the largest manufacturer and exporter in the mobile telecommunications industry in China.

The merger combines Nokia's four existing joint ventures into a single joint venture. The merged joint venture will be converted into a foreign-invested company limited by shares (CLS) subject to approval from relevant government authorities. The shareholders of the CLS will be Nokia, Beijing Capitel Co., Ltd. (Capitel), Dongguan Nan Xin Industrial Development Co., Ltd. (Nan Xin), Shanghai Alliance Investment Ltd. (SAIL), and Beijing Hangxing Machinery Manufacturing Corporation (Hangxing).

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