Chengdu Telecommunications Cable and Chengdu Posts & Telecommunications Equipment Factory said they have agreed to enter into a joint-venture project with Siemens (China). The venture will manufacture and sell telecommunications devices such as local wireless circuits and optical-fibre products as well as provide after-sales service. It is expected that the products from the link-up will be marketed to third parties, primarily in the mainland and also in other Asian countries. Under the terms of the agreement, the registered share capital of the new joint venture will be US$12 million, with the maximum total investment set at $28.6 million. Chengdu Telecommunications will invest $3 million. Siemens (China) will inject $6 million into the project, while Chengdu Posts & Telecommunications will contribute $3 million. The arrangement constitutes a connected transaction as both Chengdu Telecommunications and Chengdu Posts & Telecommunications are owned in part by China National Post & Telecommunications. Siemens also holds a 50 per cent stake in a company associated with Chengdu Communications.