Turku, Finland, 2013-04-30 08:30 CEST (GLOBE NEWSWIRE) --
TELESTE CORPORATION INVESTOR NEWS 30.4.2013 AT 09:30
TELESTE TO DEVELOP ITS PRESENCE IN CHINESE CABLE MARKET
Teleste has reached agreements with governmental cable operator of Gansu Province and Shanghai OTEC Information Technology. As a result, Teleste will have 10% ownership of a joint venture owned by the three parties. The agreements also cover sales development of the Chinese cable market as well as commencing a local manufacturing facility.
In pace with digital revolution, the Chinese government has started an intensive program to develop the services offered by cable operators in China and, accordingly, to invest in modernizing the cable network infrastructure. The Chinese cable operators have more subscribers than the entire European cable footprint. To enhance this development, small independent cable operators have been consolidated into strong provincial-level entities. Typically, such provincial-level operators correspond in size with European national cable operators.
In Gansu province, there are significant investments on-going to develop the local infrastructure. The basic pillars of the collaboration consist of Teleste’s advanced technology and product solutions, OTEC’s existing sales network in China as well as Gansu province industrial park with its modern manufacturing infrastructure.
With this agreement, Teleste is targeting to develop its sales in China as well as enhancing its competitiveness on China market through licensing its volume product manufacturing to a local joint venture. Teleste’s Luminato digital headend as well as other high value-added products represent the largest sales potential. In the future, the intention is to use the Gansu joint venture manufacturing facilities as a contract manufacturer for passives products aimed at Teleste’s European market.
”This collaboration agreement opens up an opportunity for Teleste to further develop our sales in China, where significant investments will be made in advanced cable network infrastructure. Furthermore, the manufacturing facilities of Gansu joint venture will complement our network of contract manufacturing partners by offering cost efficient manufacturing, coupled with the benefits of close partnership. We are looking forward to fast ramp-up of the co-operation in order to respond to the opportunity offered by the rapidly developing market in China”, says Hanno Narjus, Senior Vice President, Video and Broadband Solutions.
Teleste is an international technology company that develops and offers video and broadband technologies and related services. Our supply of technology contributes to the convenience and safety of daily living. Our core business is video - image and data processing, transfer and management. Our customer base consists of cable and telecom operators, as well as public sector organizations. Our business is divided into two divisions, which are Video and Broadband Solutions and Network Services. In both areas, we rank among the world's leading companies and technological forerunners. Video and Broadband Solutions focuses on access networks and product solutions in video surveillance applications. Network Services offers comprehensive services for network design, construction and maintenance. In 2012, Teleste's net sales totaled EUR 194 million, and the company employed more than 1,300 people. Teleste runs a worldwide network of offices and more than 90% of its sales are generated outside Finland. The company is listed on the NASDAQ OMX Helsinki Ltd. For more information see www.teleste.com
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488,
SVP Hanno Narjus, phone +358 40 528 8218.
NASDAQ OMX Helsinki