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China's Electronics Producers to Merge into No. 1 Company
Officials in the eastern coastal province of Shandong confirmed Tuesday that two large local electronics producers are negotiating on a merger, which, if successful, would become the country's largest electronic products manufacturer.
A local official, who declined to give his name, said the Qingdao-based Hisense Group and the Jinan-based Langchao Electronic Information Industrial Group. Co. have been discussing the details for the merger for nearly one year.
The merger will enable the new company to dwarf the Beijing-based Legend Group, China's largest computer developer, and the Sichuan-based Changhong Group, the largest electrical household appliances producer, becoming the leading electronics producer nationwide.
Hisense, established in 1994, mainly produces TVs, air conditioners, computers and software. It ranked among China's top ten electronics manufacturers with a sales volume of 10.7 billion yuan (about 1.28 billion U.S. dollars) in 1999.
Langchao is so far the largest server producer in the country. It reported a sales volume of nearly four billion yuan last year, ranking 22nd among the country's electronics companies.
Shandong is the third-largest economic power in China after Guangdong and Jiangsu provinces.
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