Nokia, Capitel Group Plan China Industrial Park Expansion

ByJohn S. McClenahen Under terms of a memo of understanding signed on Dec. 20, Finland's Nokia Corp., the world largest mobile-phone maker, and China's Capitel Group plan to double the size of the Xingwang (International) Industrial Park in Beijing to 100 hectares and to attract 15 to 20 more component suppliers, service providers and R&D institutions. Dec. 20 also marked the opening of a major production facility at Xingwang for a Nokia and Capitel Group 50-50 joint venture company, Beijing Capitel Nokia Mobile Telecommunications Ltd. The joint venture is expected to be a key driver of growth at the industrial park. Although not being specific on a time frame, Nokia says that when Xingwang reaches full capacity, its facilities are expected to generate annual sales of more than US$6 billion (50 billion yuan).