Nokia sells stake in subsidiary

1 January 2002

Nokia, the Finland-based telecoms equipment maker, has sold a 30 per cent stake in its subsidiary, Nokia (Suzhou) Telecommunications, to Shanghai Alliance Investment Co, an arm of the Shanghai city government. The sale converted the wholly-owned subsidiary, which manufactures cellular network equipment, into a joint venture. Shanghai Alliance, which is backed by Jiang Mianheng, son of President Jiang Zemin, already owns a stake in China Netcom.

In a separate announcement, Nokia has signed a memorandum of understanding with Zhejiang provincial government to set up a research and development centre in Hangzhou. The centre, Nokia's second R&D site in China, will employ up to 500 people and will develop software and technologies related to third-generation networks.