JSFC Sistema has said that Vladimir Evtushenkov, chairman, board of directors, Sistema, and Shi Lirong, president, ZTE Corporation, have signed a memorandum of understanding, which outlines the principles and strategic direction for future cooperation between the two corporations.
The memorandum, which is not legally binding, stipulates that the objective of the strategic cooperation between Sistema and ZTE is jointly to develop and promote technologies in Russia and other CIS countries.
It is expected that this long-term objective will require production sites to be established in Russia (Zelenograd) and China (Hangzhou and Shenzhen) by a joint venture between JSC SITRONICS, a subsidiary of Sistema, and ZTE. In addition, Sitronics and ZTE plan to make investments in the joint venture by the end of 2011 in the form of cash, intellectual property or production facilities.
