NEC Corp (NEC), Packard Bell and Taiwan's GVC have reached an agreement to form a new joint venture company in China to make computer monitors. The new company's name is to be NPG Display (NPG). NPG will have its headquarters in Hong Kong but set up its manufacturing facility in Dong Quan, Guangdong. The company will be capitalised at US$7.4 million with NEC having 35 per cent of the company, PB 35 per cent and GVC taking 30 per cent. NPG will be established next month, with full production expected to begin next May. Initially, NPG will make mainly 14 inch and 15 inch monitors with production volume projected at around 120,000 units per month. The companies are also considering expanding the production level to 240,000 units per month (almost three million units per year) after 1997 on expected strong demand. The monitors manufactured in the new facility will be distributed through NEC and PB sales channels. In August NEC and PB signed an agreement under which NEC acquired 19.99 per cent of Packard Bell's shares. Since then, both companies have been holding discussions regarding co-operation in the fields of joint procurement and the use of key devices for multimedia products. The joint venture in manufacturing monitors is one of the results of the discussions. In the rapidly expanding PC industry, the demand for monitors has been growing rapidly. PC manufacturers are eager to secure their own monitor production facilities to avoid product shortages. For NEC the joint venture is important because it allows it to expand lower-end product line while also giving PB a steady supply for its PC products. GVC, already a supplier of monitors to PB, has started production in the new manufacturing facility in China. The new joint venture will lift the supply of monitors from the companies and accelerate NEC's and PB's PC business in their home markets.