Hsinchu, Taiwan – Accton Technology Corporation (Accton hereinafter), (TAIEX: 2345) today announced a US$18 Million joint venture with SVA Group China (SVA hereinafter), a leading manufacturer of IT and household appliances, to create a new company named SVA Accton Co. (SVA Accton Co. hereinafter) to seize the fast-growing networking and communication market in Mainland China. This join venture was created to utilize Accto’s management know-how and technological capability with SVA’s well-developed sales channels and strong national presence within China.
SVA Accton Co. will be headquartered in Shanghai Industrial Park, and focus on both OEM and branded development, manufacturing, and sales of layer 2 and layer 3 switches and wireless LAN products. According to Market Intelligence Center (MIC) research anticipated that Mainland China will have more than 50 million Internet household connections this year, making it the world’s second largest residential Internet market. Given the potential end-users needs of broadband products plus enormous networking and communication infrastructure devices for the 2008 Beijing Olympic Games, SVA Accton Co. will be in place to become a major networking provider within China in the future.
Although Accto’s Mainland China development is slightly later than other networking competitors, this strategic collaboration undoubtedly reveals Accto’s commitment and future confidence towards the China market. “Unlike other Taiwan IT companies, Accto’s Mainland tactics was not purely searching for transferring manufacturing or expanding production capacity. Instead, Accton is seeking for a local partner with manufacturing, Research & Development, sales and marketing capabilities. We believe that SVA/Accton will expand not only Accto’s presence in the local market, but global competitiveness as well.” said Mr. Frank Kuo, Executive Vice President of Accton.
“SVA is a well-known group in China, with more than 30 subsidiaries worldwide. Owing to multinational companies value China as a huge potential market and SVA has both IT and household appliances as core product groups, many of our subsidiaries were joint venture with multinationals.” Said Mr. Hsu, Chairman of SVA. “SVA and Accton will combine their resources to develop technology and applications such as Set-Top-Box, Wireless and VDSL products. This joint venture will join the complementary functions from each part, beginning in China and in the future reach out to the global market.”
Accto’s participation in this joint venture assists SVA to innovate and integrate Information Technology with household electronic appliances. With SVA’s support Accton is able to further its niche development in the China market. Undoubtedly, this collaboration demonstrated a win-win partnership in the competitive hi-tech industry.
Summary of SVA
Shanghai General Electronics Group Co., Ltd. (SGEG) was founded in 1995, and reorganized on March 1997. SGEG is co-invested by Shanghai Automotive Industry Group Development Company, Shanghai Broadcasting Movie & TV Development Company, Shanghai Instrumentation & Electronics Holding Group Company and Shanghai Enterprise Group Company, which is a large-sized electronic enterprise group. It is also listed as one of the trial units of 120 large-scale groups fully supported by China Central Government. Its registered capital is RMB2.09billion and its 30 investors include 20 holding companies and 10 publicly listed companies.
At the end of 2000, the total assets of SVA Group totaled RMB31.6 billion. Its business scope covers the information product manufacturing and information services, broadband gateways, a variety of household electric appliances, vacuum electronic devices and automotive electronics.
