LG and Nortel Establish Joint-Venture
August 19, 2005
On Wednesday August 17, LG and Nortel signed an agreement to form a joint-venture in Korea for the development of telecom equipment and networking solutions, which will be called LG-Nortel. According to the two companies, the joint-venture will have a starting capital of US$295 million, with Nortel taking a 50% plus one share in the venture and LG taking the rest. A specific area of cooperation would be WCDMA technology, with LG providing mobile phones and Nortel chipping in with switching equipment, as orders for WCDMA mobile phones and equipment in East Asia are expected to grow in the coming years.