S MEGGA International Holding will supply high-technology communications equipment to the People's Liberation Army (PLA) through a joint venture set up last month.

The Shenyang-based joint venture would focus on supply of telecommunications with special security features, said executive vice-president for finance, Stephen Kwok Kwai-sun.

S Megga signed an agreement with PLA subsidiary, China Electronics System Engineering Co, to set up the $100 million joint venture equally.