H share Nanjing Panda Electronics has sought to quash rumours of a retreat from its partnership with Swedish mobile-telephone manufacturer Ericsson, saying there are no plans for the European giant to reduce its interest in joint ventures with the company.
'It is impossible that Ericsson will withdraw from the joint ventures. Our partnership is indispensable. Ericsson is making good profit from the joint ventures with us,' said Nanjing Panda vice-president Shi Qiusheng.
Speculation of a retreat started to circulate late last year when Ericsson announced a withdrawal from its Nanjing handset manufacturing joint venture - Nanjing Ericsson Panda Mobile Terminals. The handset venture was formerly 65 per cent held by Ericsson but the Swedish firm completed the disposal of the stake to Finland-based Microcell last September.
'Our partnership relationship with Ericsson is very strong. Ericsson said only that it wanted to further tighten its co-oporation with Nanjing Panda, not loosen it,' Mr Shi said.
He said both partners had enjoyed a synergy through their joint ventures and that there was no reason for the partnership to end.
He said Nanjing Panda offered low-cost manufacturing and product research and development, while Ericsson had strong technology advantages and network infrastructure. Both partners would therefore mutually benefit from co-operation.
In December last year, Ericsson reorganised its joint ventures with Nanjing Panda, in which all of Ericsson's Chinese businesses related to mobile base stations and network products were consolidated with Nanjing Ericsson Panda Communications (ENC). Ericsson has a 51 per cent stake in this joint venture.
