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Sony-Ericsson Acquires Local Phone Maker

Sony Ericsson Mobile Communications announced yesterday that it is to take control of Beijing Ericsson Putian Mobile Communications Co Ltd (BMC), a joint-venture mobile phone manufacturing facility, by raising its share holding to 51 per cent.

The acquisition has gained the nod from the Ministry of Commerce, the company said.

Sony Ericsson Mobile Communications (China) will increase its stake in BMC from 10 per cent to 26 per cent, while Sony Ericsson Mobile Communications in addition will acquire a 25 per cent equity stake in the company.

Therefore, Sony Ericsson will now have a controlling 51 per cent stake in the venture.

"The consolidation of BMC into Sony Ericsson will simplify the company's supply chain, generate cost efficiencies and lead to a more efficient customization process," said Miles Flint, President of Sony Ericsson.

After the acquisition, BMC will become a manufacturing base strengthening Sony Ericsson's global supply.

And the JV will be renamed Beijing SE Putian Mobile Communications Co Ltd.

The other shareholders will continue to be China Putian Co Ltd, Nanjing Panda Electronics Co Ltd and Hong Kong Yung Shing.

The newly-appointed president emphasized that the Chinese market is of pivotal importance for its global strategies.

The Chinese business is "on the right track," he said yesterday.

"We are expected to continue to score strong growth in the market."

Internationally, Sony Ericsson reports a strong increase in shipments and record profits for the first quarter of 2004 ended in April.

Units shipped in the quarter reached 8.8 million, a 63 per cent increase compared to the same period last year.

The company has increased its estimate for the global market for 2004 from approximately 520 million units to over 550 million units.

Yesterday, Flint also announced that Sony Ericsson's China research and development center will expand into a global development unit to develop products and applications for China as well as for the international market.

The company's other three R&D centers are located in Sweden, Tokyo and North America.

(China Daily July 1, 2004)

Sony Earns US$16 Million in Chinese Market
Sony Plan Focuses on High-End Products
Ericsson Favors China Market
Sony- Ericsson Looking to CDMA License in China
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