Establishment of NEC System Technologies (Hangzhou), Ltd.
- Expanding software development and technological capability in China - |
July 15, 2004-NEC System Technologies, Ltd. and Totyu Co., Ltd. (Head Office: Shinagawa-ku, Tokyo, CEO: Ding Wei Ru, hereinafter referred to as Totyu) announced today that the companies agreed to jointly establish NEC System Technologies (Hangzhou), Ltd. as a subsidiary in Hangzhou, a high-tech zone in China. NEC Systems Technologies (Hangzhou), Ltd will help NEC System Technologies expand their software development expertise and enhance their technological capabilities. The companies signed an agreement July 14 and filed an application for the incorporation of a foreign-owned company to the government of Hangzhou.
Since it was incorporated, NEC System Technologies has been striving to expand its business operation globally. Based on this goal, NEC System Technologies increasingly outsourced software development to companies in China. The company decided to establish the subsidiary, to enhance software productivity, development technology, as well as cost competitiveness for further business development.
Hangzhou was selected as the location of the company due to; 1) Hangzhou offers one of China's best science technology-related educational and research locations including Zhejing University where a recruiting software engineer is easy. 2) Supportive city government, 3) easy access from Japan, 4) closeness to Shanghai area where many of the software companies to which NEC System Technologies has outsourced is located.
NEC System Technologies (Hangzhou), Ltd. will start its operation from October of this year. It will be considered as a consolidated subsidiary of NEC System Technologies, Ltd. The subsidiary will be responsible for parts of software development activities for Japanese market, and for driving accumulation and enhancement of the technological capabilities as a center of R&D in the software development field. The subsidiary will strive for business expansion, eyeing future software business operation in the Chinese market.
NEC System Technologies (Hangzhou), Ltd will start with 10 people with a plan to expand to about 50 by the end of this fiscal year. NEC System Technologies plans to employ several hundred software development engineers in the future. By collaborating with Totyu, which has maintained a good relationship with the NEC Group for a long time and who is the largest vendor of software development for Japan in Hanzhou, NEC System Technologies (Hangzhou), Ltd. can take advantage of various support, such as recruiting and Japanese language trainings, in order to smoothly bring the business up to speed.
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