Swedish telecommunications giant Ericsson is reorganising its mainland operations along geographical lines, which will concentrate production of its communication systems in Nanjing and its mobile phone handsets in Beijing. The overhaul of the firm's mainland operations will also restructure the shareholding of its joint ventures with domestic partners Nanjing Panda Electronics and China Putian, according to sources close to the plan. Of the 10 joint ventures in which Ericsson is involved in China, three - Nanjing Ericsson Panda Communications, Nanjing Ericsson Panda Mobile Terminals and Beijing Ericsson Mobile Communications - will be restructured. Yesterday, The 21st Century Business Herald reported that Ericsson planned to sell its 65 per cent in Panda Mobile Terminals. The president of Panda Mobile Terminals, Arvid Jauring, said: 'There is a restructuring of Ericsson's activities in China where this is under discussion as part of the whole restructuring. It has to be seen as the whole package.' Sources indicated Finnish handset manufacturer Microcell would buy Ericsson's stake and continue to make handsets under the Ericsson brand. Ericsson will not quit manufacturing handsets in China. Instead, the company will concentrate all its mobile-phone handset production in Beijing, where its Beijing Ericsson Mobile Communications joint venture with China Putian also manufactures handsets. After the restructuring is completed, Ericsson will be the largest shareholder of the Beijing joint venture followed by China Putian. Nanjing Panda will take a stake in the Beijing Ericsson Mobile Communications and become the third-largest shareholder. At the same time, the Beijing Ericsson Mobile Communications joint venture has some transfer network gear manufacturing capabilities, which will be moved down to Nanjing, together with Ericsson's other operations. Ericsson and Nanjing Panda set up their communications joint venture in 1992 to make network gear products including global system for mobile communications (GSM) and code division multiple access (CDMA) digital mobile communications systems and switches. Ericsson will remain the largest shareholder of the unit, followed by Nanjing Panda. But China Putian will also take a stake and after the restructuring become the third-largest shareholder. Ericsson's restructuring probably will not be completed for two to three more months.