SITRONICS and ZTE Corporation Team for Strategic Development

SITRONICS (News - Alert) provider of telecommunications, information technology and microelectronic solutions in Russia and the CIS has announced that it has joint ventured with ZTE (News - Alert) Corporation a telecommunications equipment supplier in the People’s Republic of China.

 

Both the companies have come to terms to focus on development and production of telecommunications equipment, CDMA terminals and specialised electronic products. The joint venture expects to launch a research and development centre in the near future.

Sergey Aslanian, President and Chief Executive Officer of SITRONICS stated  “This joint venture is one of our key projects and is in line with our strategic development plan. It will enable us to migrate our mass manufacturing and production capacity from Europe to South-East Asia, thereby improving efficiency levels and reducing costs.”

 

SITRONICS provides telecommunication solutions in Russia and has strong Central and Eastern Europe and a growing presence in the Middle East and Africa.

SITRONICS confirms on serving over 3,500 clients, maintains offices in 32 countries and exports its products and services to more than 60 countries. It has over 11,000 employees. It claims to have developed strategic alliances in its home markets with Cisco (News - Alert) Systems, STMicroelectronics, Infineon and Giesecke & Devrient in relation to certain products and services.

 

SITRONICS maintains vendor relationships with Siemens, Ericsson, Motorola (News - Alert), ORACLE, Intel, Sun Microsystems and Microsoft. Its key customers include the SISTEMA Group companies, such as MTS, Comstar UTS and MTT, and also OTE, Cosmote, Vodafone, Ericsson (News - Alert).

 

With this joint venture, SITRONICS holds a 51 percent stake and remaining 49 percent goes to ZTE Corporation. The Company’s Board of Directors will comprise three representatives from SITRONICS and two from ZTE Corporation. Sources confirmed that the venture company will be established in the city of Hangzhou in the East of China.

 

Hurem Nihad, a member of SITRONICS’ Board of Directors, has been appointed as Chairman of the joint venture company’s Board of Directors. ZTE Corporation’s representative will be appointed as CEO, and SITRONICS’ representative will be appointed as CFO.

 

ZTE Corporation, a Chinese telecoms equipment provider .It now has about 50,000 employees and 8,000 of them are working in about 100 representative offices around the world.

 

It claims to have more than 33 percent of its workforce dedicated to R&D and with 10 percent of its annual revenues channeled to this field, ZTE has established 16 R&D centers and Institutes across North America, Europe and Asia. International standards such as CMM and CMMI are strictly applied across all ZTE R&D management processes.

 

In 2000, ZTE launched the CDMA mobile phone with detachable SIM card. In 2004, the company launched CDMA-based digital trunking technology - GoTa (Global open Trunking architecture system) based on ZTE-owned intellectual property.