TYCO purchases Chinese power cable operation
( 2003-08-19 14:30) (People's Daily)
US-based TYCO, one of the world's top 500 companies, has purchased a private
Chinese firm's fireproof power cable operation, together with its trademark, for
10 million US dollars.
The Jiuli Group, based in east China's Zhejiang Province, is China's largest
producer of fireproof power cables. It sidelined TYCO, whose output of mineral
insulating power cable leads the world, in 2002 in an international bidding for
a mineral insulating cable project for the relocation project of Baiyun
International Airport in Guangzhou, capital of south China's Guangdong Province.
Impressed by the group's technologies, production scale, management and
trademark value, TYCO offered to buy the company.
According to the agreement, TYCO will continue to use the Jiuli(which means
"long-standing") trademark, and hopes to expand the Jiuli operation's capacity
until it becomes the largest fireproof power cable base in Asia.
The Jiuli Group itself will concentrate on manufacturing stainless steel
products, with its output and sales among the top three in China. The company
has said that it hopes to become China's largest stainless steel products maker
in the next couple of years and one of the top five in Asia by 2007.
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