China Aerospace Corporation (CASC) and the U.S.-based Digital Equipment Corporation have planned to build a joint venture in China to develop, manufacture and distribute network computers.

Under the terms of a memorandum of understanding, Digital will provide engineering and design resources for the venture while CASC will be rendering the manufacturing expertise, distribution capabilities, and application development for the market.

The total investment, to be shared equally by the two companies, may reach 40 million US dollars.

They expected to make first shipments by the end of 1997, with plans to produce 150,000 units by the year 2000.

Digital brings to the venture not only its industry-leading StrongARM microprocessor, but the ability to help leverage the output of the venture through its broad product and service capabilities, including high-performance servers and systems integration expertise, said Bobby Choonavala, president of Digital Asia Pacific.

Hailing CASC as "an ideal partner for us in China," he said: "CASC brings to the venture a wealth of manufacturing expertise in personal computers, electronics and communication devices as well as established distribution channels."

CASC, which exclusively deals with satellites and other space products in China, has joined hands with Digital since 1994 in distributing Digital workstations.

Source: XINHUA