China Great Wall Computer Group Corporation and the Algerian broadband network operator EEPAD have reached an agreement to jointly invest USD4 million to set up a manufacturing joint venture in Algeria.
The new joint venture, in which Great Wall Computer will own about a 30% stake, is expected to produce 100,000 netbooks in the first year of its operation and its production capacity will be increased to 200,000 netbooks in the second year.
According to Huang Maoqing, general manager for the brand management center of Great Wall Computer, the joint venture has already received a contract of 150,000 netbooks in the African market. Huang said the ultimate goal of this joint venture is to reach annual production capacity of 500,000 netbooks. However, this is only the first step for Great Wall Computer's expansion in the African market and the company will build more manufacturing bases in Africa in the future.
At the same time, Great Wall Computer revealed that its acquisition of the 99% stake in China Great Wall Computer (H.K.) Holding has been approved by China's Ministry of Commerce. Upon the completion of this acquisition, Great Wall Computer will take over a 17.11% stake in the monitor manufacturer TPV Technology, owner of the AOC brand, from China Great Wall Computer (H.K.) Holding, increasing its total shareholdings in TPV Technology to 26.58%.
Great Wall Computer's annual financial report for 2008 shows that the company's revenue from the domestic Chinese market was CNY2.595 billion, accounting for 66% of its total revenue, while its revenue from the overseas markets was CNY1.14 billion, accounting for 34%.