Leading mobile phone maker takes over local electronics manufacturer

World's leading mobile phone maker Sony Ericsson has announced that it had got a go-ahead signal from the Chinese government to buy into a producer of printed circuit boards, named Beijing Suohong Electronics Co., Ltd (BSE).

The move will expand its in-house manufacturing capacity, and give it the chance to catch up with top industry players Nokia and Motorola.

With the Ministry of Commerce's approval, Sony Ericsson Mobile Communications will raise its share in BSE, which was mainly dedicated to the outsourced assembly of printed circuit boards, from 10 percent to 74.5 percent, China Daily reported on Wednesday.

BSE will work in strong co-operation with Sony Ericsson's majority owned Beijing SE Putian Mobile Communications Co., Ltd. (BMC), located next door, to maximize economies of scale and develop a fully-integrated manufacturing process from printed circuit boards to product customization.

Sony Ericsson also announced the establishment of a software testing center and a creative design center in China.

Since August 2002, when the company first established operations in China, Sony Ericsson has focused on building its presence in this highly competitive and strategically important market.

In 2004, the BMC manufacturing facility became the largest export company in Beijing, supplying approximately one third of Sony Ericsson's mobile phone shipments.

China is now the only internal manufacturing hub for Sony Ericsson.

Source: China Daily