STOCKHOLM -(Dow Jones)- Nokia says it has signed agreements with Chinese customers China Mobile and PTAC valued at over EUR2 billion for the full year 2006, reconfirming the importance of the Chinese market for the Finnish handset and mobile equipment maker.
The frame agreements were signed at a ceremony Tuesday in Helsinki, Finland witnessed by Chinese Premier Wen Jiabao and Finnish Premier Matti Vanhanen.
The frame agreement with China Mobile relates to the purchase of Global System for Mobile communications and General Packet Radio Service network equipment from Nokia with a value of approximately EUR580 million during the full year 2006.
The agreement with the Chinese national mobile phone distributor PTAC relates to the purchase of mobile devices from Nokia with an estimated value of at least EUR1.5 billion for the full year 2006.
"The signing of these two important agreements is a milestone event for Nokia's operations in China," said Nokia's Chief Executive Olli-Pekka Kallasvuo in a statement.
"We set up our operations more than 20 years ago with a handful of employees and today we employ over 6,700 people in China. It is the single biggest market for Nokia, as well as one of the largest contributors to Nokia's research and development, manufacturing and innovation."
Nokia said that to date the company has committed over EUR3.3 billion to investments in China.
Nokia had revenues of EUR3.8 billion in China in 2005 and sold 32.5 million mobile phones in the country.
Company Web site: http://www.nokia.com
-By Magnus Hansson, Dow Jones Newswires;+46 8 545 130 91, magnus.hansson@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 12th September 2006
Posted to: www.cellular-news.com/story/19293.php