Accton and SGEG to set up a joint venture; target is the network communication market of China

Accton, a major network facility maker in Taiwan, announced on January 9 its plan to cooperate with Shanghai General Electronics (Group) Co., Ltd. (SGEG), one of the top-three enterprise groups in Shanghai with an annual income approaching NT$200b.  They are to set up a joint venture, Shanhai-Accton Co., Ltd., of which initial capital amounts to US$18m, and their goal is to take the fast-growing network communication market in the Mainland China.  A grand ceremony will be held in Shanghai this 9^th for the signing of this strategic alliance. 

The cooperation between Accton and SGEG is the first of its kind.  It marks the first-time cooperation between companies across the strait on an omnibearing basis from marketing, branding, R&D and manufacture, different from the past when Taiwanese companies entered into the Mainland China just to establish production stations.  This new cooperation, meaning the integration of existing marketing channels for electronic product brands to reach the enormous domestic market of China, orders from Europe and the US, low production costs in China, and the superior management of technology from Taiwanese companies, may prove to be the best new mode of transnational cooperation.  It could become a trend for Taiwanese industries to create new opportunities.

Source: Commercial Times 01/10/2002