Nokia Siemens Networks, the world's second largest maker of wireless networks, said its third-quarter sales rose 26.4 percent in China, a sign of growing customer confidence in the joint venture.

 

"The result signals that our customers' concern over the joint venture's integration has eased and that now we're on the right track," said Zhang Zhiqiang, head of Nokia Siemens Networks Greater China. "We will continue to streamline our business for further growth here in China."

 

The company's sales from China reached 372 million euros in the third quarter, about one-tenth of its 3.7 billion euros of global sales revenue in the same period. The growth came after a lukewarm start when the joint venture was established in April.

 

The telecom giant has secured several new deals in China over the past few months as it tries to streamline the joint venture's product portfolio and introduce new lines.

 

Nokia Siemens Networks said on Tuesday it had struck a deal with Guangdong Telecom, a China Telecom subsidiary, to supply a charging system for the operator. In September, it won a 2 billion yuan deal to provide equipment for China Mobile's Henan subsidiary to upgrade its GSM network.

 

"We will continue to increase our research and development staff in China," said Zhang, without revealing figures. In May, the company said it would cut 9,000 jobs before 2010, including 300 in China. But in August it said it would enhance its research and development capacity to maintain its lead in China.

 

Nokia Siemens Networks employs around 5,500 in China, including at a research center it established in Chengdu in August.

 

(China Daily October 25, 2007)