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SCMP Reporter

HUGHES International Corp has formally launched its first Hong Kong regional office, Hughes Asia Pacific (Hong Kong), which will serve as a gateway to the vast China and Southeast Asian markets.

  The US defence and electronics giant has been operating in the Asia-Pacific region since the 1950s, but now feels it will be better served with personnel based in the field.

  Already a string of major deals is being lined up in China, and Hughes Asia Pacific president John Koehler confidently predicts a minimum of US$100 million will be invested in China over the next five years.

  A large regional office has also been opened in Tokyo and a smaller representative office in Beijing.

  Gareth Chang, president of Hughes International, said: ''The headquarters concept is disappearing rapidly and we are focusing on our international presence.''   Another prime reason for the Hong Kong office is to give the group a voice in the region.

  The Hughes group has a vested interest in battling to pull down barriers being erected by the Clinton administration limiting the transfer of certain types of technology to China.

  In August, Washington banned sales of sensitive US technology to the mainland in retaliation for alleged Chinese sales of M-11 missiles to Pakistan.

  However, under these sanctions it is not clear if or when the US Government will give GM Hughes Electronics export licences permitting shipment of its Optus 3 and APT satellites to China.

  It is now studying the possibility of a number of other satellite launches with the Chinese even though US sanctions have thrown into question the fate of three launches already contracted.

  The next major deal likely to be announced by the Hughes-GM group in China is a car electronics manufacturing joint venture in Beijing.

  Hughes subsidiary Delco Electronics and its General Motors associate AC Rochester will be teaming up with three mainland parties, Beijing Wan Yuan Industries, China Great Wall and the Municipality of Beijing, to manufacture fuel injection systems.

  It will involve an initial investment of $30 million, which is likely to increase as the joint venture progresses.

  The group is also actively looking to increase its digital telecommunications equipment sales in China and help set up a number of much-needed air-traffic control systems.

  GM Hughes Electronics is already supplying the hardware for thousands of digital cordless telephones and earth stations to Chengdu and has hopes of making similar moves elsewhere.



Hughes office gateway to Asia