Sitronics-ZTE

Sitronics-ZTE is the joint venture of Sitronics concern with the Chinese corporation ZTE Corporation founded on September 4, 2008. Authorized capital of Sitronics-ZTE Ltd. made $1 million.

Nihad Hurem, the board member of JSC Sitronics is appointed the chairman of the board of directors of joint venture.

In April, 2008 the CEO of Sitronics company Sergey Aslanyan told journalists that Sitronics intends to transfer a part of production to China. According to him, in China the company will be engaged in equipment manufacturing for mass market and for telecom operators: for example, dual-standard phones CDMAGSM (/) and also receivers GLONASS. By Sergey Aslanyan's calculations, transfer of a part of production to China will allow to reduce cost value of products by 20-25%. Besides, within the signed agreement Sitronics and ZTE are going to create a joint research and development center.

Management

Will join five people the board of joint venture: three from Sitronics, two - from ZTE. According to Sergey Filippov, from JSC Sitronics the board will be joined by the head of the "Sitronics Consumer Services and Goods" business direction Sergey Urezchenko, the commercial director of the Zelenograd plant "Kvant" Artem Patlis and the senior vice president on development of new products and technologies of Sitronics Nihad Hurem appointed the chairman of the board of directors of joint venture. ZTE did not delegate representatives to Board of Directors of Sitronics-ZTE Ltd yet. The representative of ZTE corporation Li Qing is appointed to a post of the CEO of joint venture, the representative of Sitronics will become the chief financial officer.

Development center

On June 1, 2011 it became known that Sitronics transfers an essential part of research and development (R&D) to the Chinese joint venture from ZTE. The innovation center Skolkovo which is laying claim to the main Russian hi-tech of the center is not considered^[1] an alternative].

The joint venture with ZTE has all conditions for successful Research and Development, Aslanyan notes: the headquarters is located near the city of Tyanzhin (in half an hour of driving by train from Beijing), the enterprise for seven years is completely exempted from payment of taxes, and at its order cheap labor power and all infrastructure. Expenses on the qualified engineer in China make about $20,000 a year (including salary, social payments, etc.), in Russia — $30 000-50 000, and in the Czech Republic where Sitronics also has a development center — 50,000 euros.

In the center, joint with ZTE, products based on RFID technologies (high-frequency radio tags for goods marking in shops, in warehouses, etc.) will be developed, in particular, on which now the increased demand in the world, he says. In the new center telecommunication equipment will also be developed, Aslanyan adds.

In Chinese R&D-центр partners do not open investment. But in general in 2011 Sitronics will direct to researches and development of 5% of revenue, the vice president of Sitronics Irina Lanina says. Representatives of Sitronics predicted earlier that growth of revenue in 2011 will be not less than 10% (approximately to $1.28 billion), i.e. investments in R&D can make about $64 million Sitronics continues research and development in the Czech Republic and also opens R&D-центр in St. Petersburg, and further — in Krasnodar. Investments into development of billing systems in these centers of Russia and the Czech Republic will make $10 million, Lanina adds.

However with the innovation center Skolkovo which invites to itself(himself) the hi-tech companies, promising tax benefits, Sitronics does not conduct subject negotiations as there is no "common ground" yet, Aslanyan told. But the Skolkovo Foundation discusses a number of the directions of cooperation with AFK "Sistema" (controls Sitronics), the director of key partners Skolkovo Roman Romanovsky claims. According to him, one of offers of fund — placement in the innovation center of the centers of Research and Development of the companies entering into AFK. But negotiations only began, he makes a reservation.

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