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Chinese-Argentine electronics joint venture.

Wednesday, December 1st 2004 - 20:00 UTC
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TCL from China, the world's largest television maker has singed a joint venture with Argentine electronics Radio Victoria and has plans to invest 20 million US dollars for the manufacture of electronic appliances in Argentina, reported Buenos Aires press.

The Chinese company will provide technological support and components to manufacture its brand-name appliances at the Radio Victoria plant in Tierra del Fuego. This investment comes at a time when Argentina is at odds with Brazil over electronics imports.

In the first half of 2005, Radio Victoria will begin manufacturing television sets, liquid crystal display (LCD) screens, digital video discs (DVDs) and air conditioners, as specified in the joint-venture agreement.

Beginning July 2005 Radio Victoria will also manufacture more advanced products such as plasma televisions, digital cameras, desktop and laptop computers, and fixed-line and wireless telephones.

The agreement was signed following Argentina's recognition of China as a "market economy" in exchange for a promise of increased exports to the Asian country. The timing of the agreement also coincides with trade barriers imposed by Argentina to imported Brazilian television sets and washing machines manufactured in the Manaus duty-free zone.

"We're hoping to establish the TCL brand in the country's three largest cities within the next five years" Radio Victoria CEO Manuel Jurkowsk revealed to the Buenos Aires press adding that the company has plans to invest 20 million US dollars in the next five years running to 2009.

Created in 1981, TCL has 44,000 employees and boasts sales of some $7 billion a year. The Chinese company is the world's top television manufacturer, producing some 18 million sets annually. Argentina's domestic market is expected to absorb a million television sets in 2004, a 150% jump over 2003, and is expected to expand a further 30% in 2005.

Categories: Mercosur.

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