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  • IBM Tech Center in China Contracts With Hong Kong Maker
  • July 6, 1998 (HONG KONG) --Jackin International Holdings Ltd., a Hong Kong-based manufacturer of information storage media products, entered into a subcontracting agreement with IBM China Co., Ltd.
    Jackin will provide exclusive services to IBM's first information technology center in China for the replication and production of authorized computer software.

    IBM's technology center, in Shanghai's Wai Gao Qiao Free Trade Zone, will produce licensed software products in the form of CD -recordables (CD-Rs), CD-ROMs and floppy disks for use with mainframe, mid-range and personal computers.

    The facility started operations in May. Its business will consist of "build on demand" orders, which involve the production of high mix and low volume products used for mainframe and mid-range computer applications as well as "build on plan" orders that involve low mix , high volume products used for personal computers.

    Initially, products made at the facility will be for export only, but Jackin is prepared to supply the China market as demand increases for software products. Under the agreement with IBM, Jackin has a five-year contract, which can be extended for another five years.

    Providing "total fulfillment" services to computer hardware manufacturers in China has tremendous potential, said Helena Ho, Jackin's chairman. Jackin expects that by associating with IBM China in Shanghai, more doors will be opened to other projects involving information technology products.

    Ho said that this year, sales of the Shanghai facility and other "total fulfillment" contracts already in the pipeline will likely rise. The bundling of computer software with various kinds of hardware will remain the trend.

    (Eleanor Yeung, Asia BizTech Hong Kong Editor)

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    Updated: Sun Jul 5 06:34:17 1998