Motorola Energy System Group Opens in Shanghai

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Last updated at: (Beijing Time) Friday, July 12, 2002

Motorola Energy System Group Opens in Shanghai

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Motorola announced the opening of its Energy Systems Group (ESG) Asia Pacific management centre in Shanghai on Wednesday -- a move that reaffirms the American mobile telecom giant's solid future in China.

The centre is home to research & development (R&D) and global production.

The move brings the company closer to its goal of investing US$10 billion and accumulating US$10 billion in purchasing orders in China by the end of 2006.

The Shanghai centre will initially provide design services and supply chain management for the Asia Pacific Region for the ESG in addition to an ESG factory in Tianjin.

These functions used to be undertaken by Motorola's operations in Atlanta in the US, Penang in Malaysia and Tianjin in China.

ESG provides complete energy system solutions for portable electronics, including cellular phones, personal digital assistants, notebook computers, and leading brand-name wireless communication and computer devices.

"Motorola ESG is expanding its presence in Asia to demonstrate our commitment to our customers who require closer working relationships early in their development stages of portable consumer products," said Padmasree Warrior, corporate vice-president and general manager of ESG.

The Shanghai centre, a key location for ESG, supports Motorola's business development strategy to deliver industry-leading embedded electronic solutions, he said.

Percy Lam, Asian general manager of ESG, added that with the great potential for portable energy systems worldwide and especially in the Asia Pacific region, the Shanghai centre is a significant growth opportunity for Motorola, Shanghai and China.

Motorola ESG will also move its global procurement base from Atlanta to Shanghai, as the company's local purchase is "increasing tremendously." But Lam declined to reveal ESG's purchase volume or rate of increase.

Vice-President and Director of Corporate Finance for Motorola China Jenny Wang pointed out that, relocating in Shanghai, the centre will exert great impact on its procurement strategy in the Yangtze River Delta.

"In the past two to three years, we have been increasing our supply centre in China and we will continue to grow our supply base here," said Doug Morris, vice-president and director of engineering, quality and supply chain management.

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