Japanese technology giant Hitachi yesterday saw
subsidiary Hitachi Data Systems (HDS) establish a wholly foreign-owned
enterprise in China, with an investment of US$15 million.
HDS, a supplier of digital storage products and solutions, said it will use
the enterprise, which has a registered capital of US$6.3 million, as a base to
increase investment in China and offer more comprehensive solutions and services
to its local customers and partners.
HDS first entered the Chinese market in 2001 and currently has representative
offices in major cities such as Beijing, Shanghai, Guangzhou, Chengdu, Hangzhou
and Nanchang.
Francis Ko, general manager of HDS China, said the subsidiary's new
enterprise aims to also establish its own subsidiaries in Shanghai, Guangzhou
and Chengdu.
"We have already achieved enormous success in the Chinese market through
close and effective co-operation with local partners in the past five years,"
said Ko.
"As a real business entity now, we can fully use the strength of our business
network across China and continue to invest in this market."
According to Beijing-based research house Analysys International, the storage
equipment market in China in the fourth quarter of last year was worth 1.99
billion yuan (US$249 million), increasing 16.4 per cent year-on-year.
The rapidly growing information technology market has spurred surging demands
for storage solutions.
"We foresee the demand for storage in China undergoing an unbelievable
increase," said Ko.
Telecom and finance companies as well as government agencies are believed to
be the biggest buyers of storage gear and solutions.
Chinese telecom operators' ongoing efforts to build next generation networks,
as well as the increasing opening of the financial sector, are expected to be
major contributors to the growth of the storage market in the coming years.
To cash in on the opportunities, major storage solution providers have been
increasing their investment in China. In June, US-based EMC Corp, the world's
largest provider of data storage and information management solutions, announced
a US$500 million investment in China within five years.
A large portion of the money will be spent on research and development,
according to Chairman and Chief Executive Officer Joseph Tucci.
HDS expects to record double-digit annual sales growth in China.
(China Daily 09/12/2006 page10)
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