Joint Ventures and Strategic Alliances in Asia: March 9, 2000

Strategic Insights -

Several Asian companies formed strategic partnerships and joint ventures to counter planned capital spending reductions by large conglomerates and to bolster market positions. The formation of these alliances reflects the region's growing emphasis on collaboration and cooperation amidst increasing competition.

Key Takeaways:

  • Kyowa Exceo Corp. and Daimei Telecom Engineering Corp. will form a business alliance in management information systems and engineering technology, enabling the companies to survive Nippon Telegraph and Telephone Corp.'s plans to reduce capital spending by 900 billion yen (US$8.41 billion) over three years.
  • Woodside Energy Ltd and Shell Australia Ltd will join forces with United Energy Ltd and Energy Partnership to form Pulse Energy, a new energy retail company to bolster their positions in the retail energy market.
  • LookSmart Ltd, an Australian Internet search firm, has signed an agreement with Versaware Inc for the use of content on LookSmart's website, enabling the Australian site to offer local reference content for the online market.
  • Toray Industries Inc will restructure its international production system for polyester film to raise profits by 4 billion yen (US$37.24 million) per year.
  • Oki Electric Industry Co. and Fujikura Ltd will develop and market high-speed fiber-optic links capable of handling more than 1 gigabit of data per second, with plans to release a gigabit Ethernet and fiber channel in July.

Statistics:

  • Nippon Telegraph and Telephone Corp. plans to reduce capital spending by 900 billion yen (US$8.41 billion) over three years.
  • Kyowa Exceo Corp. will benefit from the alliance with Daimei Telecom Engineering Corp. by surviving NTT's capital spending reduction plans.
  • Toray Industries Inc aims to raise profits by 4 billion yen (US$37.24 million) per year through restructuring efforts.
  • Oki Electric Industry Co. and Fujikura Ltd expect to release a gigabit Ethernet and fiber channel in July.

Sources:

  • Asia Pulse, "JAPAN'S KYOWA EXCEO, DAIMEI TELECOM FORM ALLIANCE", March 9, 2000
  • Asia Pulse, "AUSTRALIA'S WOODSIDE, SHELL, OTHERS TO FORM JT VENTURE", March 9, 2000
  • Asia Pulse, "AUSTRALIA'S LOOKSMART, US' VERSAWARE SIGN DEAL", March 9, 2000
  • Asia Pulse, "JAPAN'S TORAY TO RESTRUCTURE GLOBAL POLYESTER FILM OUTPUT", March 9, 2000
  • Asia Pulse, "OKI ELECTRIC, FUJIKURA TO OFFER ONE GIGABIT FIBER-OPTIC LINKS", March 9, 2000