Japanese electronics giant Sony is expected to have a wholly owned company up and running in Guangzhou, the capital of South China's Guangdong Province by February 2005.

Becoming the 7th plant run by the firm's EMCS (Engineer, Manufacture and Customer Service) system on the Chinese mainland, investment in Sony Electronics Hua'nan Co Ltd will top US$30 million, according to Sony (China) Ltd sources in Beijing.

The plant, which will mainly be devoted to the development of digital disc players (DVD), will have a projected output value of about US$230 million in the 2005 fiscal year, according to the sources.

The new plant will also take charge of product design and R&D (research and development) targeted at the Chinese market. It is therefore expected to become one of Sony's major R&D centers in China.

Thanks to local design and production, Sony Electronics Hua'nan is expected to become a springboard for the Japanese company to launch new products and continuously expand its introduction of more new and more advanced technology to the Chinese market.

Morio Minoru, chief representative of East Asia Operations of Sony Corp, said that it is vital for Sony to localize its R&D and manufacturing if the company wants to maintains its leading role in the Chinese market.

The sizable investment in establishing the Sony Electronics Hua'nan will not only help Sony expand its business development in China, but also stimulate the development of businesses in surrounding areas in South China, therefore contributing to local economic development, he said.

Another major function of Sony Electronics Hua'nan is the procurement of spare parts and components in China for Sony's global production facilities.

(China Daily March 10, 2004)