OREANDA-NEWS  On 12 September JSC SITRONICS (SITRONICS or the "Group") (LSE: SITR), a leading provider of telecommunications, information technology and microelectronic solutions in Russia and the CIS, with a growing presence in other EEMEA emerging markets, announced that it has established the SITRONICS-ZTE Ltd., a joint venture with ZTE Corporation, which is the largest telecommunications equipment supplier in the People's Republic of China.

SITRONICS-ZTE will focus on the development and production of telecommunications equipment, CDMA terminals and specialised electronic products. The joint venture expects to launch a research and development centre.

The joint venture company will be established in the city of Hangzhou in the East of China. SITRONICS holds a 51% stake in the joint venture, with ZTE Corporation owning the remaining 49%. The Company's Board of Directors will comprise three representatives from SITRONICS and two from ZTE Corporation. Hurem Nihad, a member of SITRONICS' Board of Directors, has been appointed as Chairman of the joint venture company's Board of Directors. ZTE Corporation's representative will be appointed as CEO, and SITRONICS' representative will be appointed as CFO.

Sergey Aslanian, President and Chief Executive Officer of SITRONICS, commented: "This joint venture is one of our key projects and is in line with our strategic development plan. It will enable us to migrate our mass manufacturing and production capacity from Europe to South-East Asia, thereby improving efficiency levels and reducing costs."