Guoco enters cable business
THE Guoco Group is moving into telecommunications cable production through a US$25 million joint venture in China.
The deal was signed yesterday between Guoco subsidiary Guoco Investments (China), China National Posts and Telecommunications Industry Corp, Houma Cable Factory and Jiang Su Cable Factory.
Guoco Investments has a 45 per cent interest in the venture which has an initial paid-up capital of US$12 million.
The move represents another step in Guoco's plan to focus on manufacturing as one of its core activities until 1997.
The joint-venture company, Jiang Su PTIC-Guoco Optic Fibre Telecommunication Co, will make high-technology fibre optic telecommunications cables and conventional cables for domestic and export markets.
A factory is to be built in Yixing, Jiangsu, and trial production is scheduled to start by year-end.
China National Posts is under the Ministry of Posts and Telecommunications. It makes and distributes telecommunications products in the country.
Houma is also controlled by the ministry.
Being a manufacturer of fibre optic telecommunications cables and conventional cables, it will provide the venture with manufacturing technology.
Jiang Su Cable is owned by the Jiangsu provincial government. It makes telecommunications and power cables.