Singapore’s top domestic PC maker, GES International, is to invest $9m in a joint venture with a Chinese partner to make computers and other IT products in Shanghai. Despite the relatively small investment, GES managing director Daniel Yeong said he expects the venture with Shanghai East China Computer Co (ECC) to generate $990m in total revenue over the three years. GES will hold a 75% stake in Shanghai ECC-GES Information Technology Co.
The Chinese partner will contribute its manufacturing plant in Shanghai as well as distribution operations in eight major Chinese cities. GES plans to transfer manufacturing of its Datamini brand PCs to ECC-GES. It will continue making PCs for HP, Hitachi and other clients at its Singapore plant.
The target for the ECC-GES Shanghai plant is 150,000 PCs in the first year, half to be sold locally under the ECC brandname and the other half for export under the Datamini brandname. It will also make PC peripherals.
