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Sinopec, PCCW launches IT JV
( 2002-07-19 09:49 ) (1 )

An information technology (IT) joint venture between the Chinese mainland's petrochemical giant Sinopec and Hong Kong telecoms' PCCW was launched in Beijing on Thursday.

The new firm, Petro-Cyberworks Information Technology Co, will provide integrated software and hardware solution services, said Cao Xianghong, firm chairman and vice-president of Sinopec.

The joint venture IT service provider has a registered capital of 50 million yuan (US$6 million) with Sinopec and PCCW controlling 55 and 45 per cent of shares respectively.

The new firm will better use PCCW's experiences in IT services and Sinopec's leadership in the petrochem industry, Cao said.

Sinopec is spending millions of yuan to build an information platform to increase its competitiveness and efficiency. It is constructing an enterprise resource planning system, planning to adopt IC card at gas stations, building an on-line petrochemical products trading market and most importantly, embedding information technology into every aspect of its operation.

PCCW, Hong Kong's major fixed-line telephone and IT service provider, sees co-operation with Sinopec as a good opportunity to go deep into the mainland's large scale State-owned enterprises (SOE).

In the digitalization processes of Sinopec and other SOEs, huge business opportunities will be provided, said Li Zishang, vice-chairman of Petro-Cyberworks and senior manager of PCCW.

In a related development, PCCW last week set up another joint venture with China Telecom, the major fixed-line telecoms carrier on the mainland.

Also providing IT services, the joint venture with China Telecom targets the finance sector, including banks, insurance firms and securities companies.

PCCW will contine to penetrate the mainland's SOEs as those large groups have the most urgent demand for IT services, Li said.