Today, China TechFaith Wireless Communication Technology Ltd. announced that the Shenyang Government has granted approval for the company to acquire approximately 11.5 acres in Shenyang City’s Shenbei New District. TechFaith will use the property to construct a new facility, which will include integrated R&D, sales and distribution. The land contract is valued at approximately $2.3 million US dollars.
The new facility is part of a broader, major joint venture development project between TechFaith and the Shenyang PuHe New Town Administration Committee. TechFaith expects to invest approximately $31.5 million over the next three years; PuHe will invest approximately $6.3 million in the joint venture development project and will also provide up to $1.6 million to TechFaith as an investment incentive. The joint venture entity will be 16.7% owned by PuHe, with the remaining owned by TechFatih.
The capital of the Liaoning Province and the largest city in Northeastern China, Sheyang is also one of the country’s premier centers for high technology and industrial development. Sheyang also provides the backdrop for many of the China’s top universities.
Mr. Defu Dong, Chairman and CEO of TechFaith, commented, “Being able to locate an integrated facility in such a prominent high technology and industrial center will give TechFaith an advantage when working with customers and partners, hiring top R&D and sales talent, and will enhance our profile with new customers. Importantly, our joint venture will allow us to expand our capabilities while remaining financially conservative. This means we will have the benefits of our expanded capacity when the industry resumes the growth portion of the current cycle, while continuing to maintain the strong balance sheet needed to support our ongoing growth and success.”
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