Byte Power Group in US$2m JV with Chinese partner

Stan Beer
Tuesday, 25 January 2005 18:00

IT Industry - Development

ICT solutions provider, Byte Power Group Limited (ASX:BPG), has signed the heads of agreement an e-Kiosk project with our Chinese JV partner Zhengzhou Modern Logistic Center Limited.

Under the heads of agreement, the JV will have an initial investment of US$2 million. Byte Power (HK) Limited, a subsidiary of BPG, will hold 51% while the JV partner will hold 49%.

BPG has already started detailed negotiations with suppliers, potential
partners, prospective customers and investors for the project. The first 80 kiosks are expected to roll-out within 2 months of the government approvals.

BPG chairman and CEO, Alvin Phua said, "Working with a strong local partner has allowed Byte Power to secure a number of real benefits that would have been very difficult otherwise. These will allow the project to commence quickly and ensures that there is no red tape to slow down the implementation."

Phua also added that the kiosks business will become a core strategy of the Hong Kong based subsidiary moving ahead. "China is expanding very fast, and the technology infrastructure is rushing to catch up, this project places us in a good position for other related projects and also as a portal for Australian technology companies to tap into China's immense market."

The e-Kiosk project has generated considerable interest from a number of key provincial and city governments within China, according to BPG. The company says it is currently exploring opportunities with two of these groups with a view to extending the project into other regions.

BPG shares were barely traded and finished marginally up to close on 8.7c.