The Germany-based Henkel Group has taken over a Chinese eletronics company and set up a joint venture to produce electronic materials in Lianyungang, a coastal city 338 sea miles away from Shanghai.

Officials with Henkel Group announced the acquisition over the weekend but did not reveal how much the company spent on the project and how many equities it bought from its Chinese partner. No detailed information about the joint venture's production capacity is available.

Jochen Krautter, deputy CEO in charge of the technology business of Henkel, believed the newly established joint venture would become a "wonderful platform" for the German company to tap the Chinese market for eletronic materials and related products.

Located in Lianyungang City in east China's Jiangsu Province, Jiangsu Zhongdian Huawei Electronics Co., Ltd. is a leading manufacturer of epoxy molding compounds for semiconductors in China. Employing 560 people, the company realized 18 million euros in sales revenue for fiscal year 2004, said sources with Huawei Electronics.

"Huawei Electronics' growing domestic customer base provides a good counterpart for Henkel's internationally established brand," said Han Jianglong, chairman of Huawei Electronics.

The joint venture will strengthen the electronics-related business of Henkel in a region with enormous potential for the development of electronic products, said Tim Chen, head of the China branch of Henkel's R&D and application center of electronic materials.

Source: Xinhua