Nokia plans to merge its four Chinese JVs into a single corporation to produce CDMA mobile handsets. Pending approval from the Chinese authorities, the newly merged company would become one of China’s largest foreign-funded enterprises – it would also become the largest mobile telecommunications manufacturer and exporter in China.

At the signing ceremony on the agreement to establish the new corporation, Matti Alahuhta, head of Nokia’s Cell Phone Division, said that “China already is and will continue to be one of Nokia’s major manufacturing centres globally as well as a major centre for Nokia’s global research and development”. He added, ” the move to begin local manufacturing of CDMA handsets would not only allow us to broaden the products we offer to Chinese consumers, but also allows the new company to capture opportunities in China’s growing CDMA market.” The new corporation will be headquartered in Beijing, with affiliates in Dongguan, Guangzhou, and Suzhou.

Goldman Sachs, Nokia’s investment bankers for the deal, said that for Nokia clients, the integration of its manufacturing JVs will help Nokia improve its operation efficiency and overall competitiveness. The shareholders of the new corporation are Nokia, Beijing Capitel Co., Ltd., Dongguan Nan Xin Industrial Development Co., Ltd., Shanghai Alliance Investment Ltd., and Beijing Hangxing Machinery Manufacturing Corporation.

The new name and board of directors will be announced after approval has been received from the authorities.