Chinese to make drives for IBM

Great Wall Technology of China is to manufacture the 40 GByte version of IBM’s newly released Deskstar 120GXP desktop drive.

IBM and Great Wall Technology of China have signed an agreement in which Great Wall will manufacture computer hard disk drives for IBM.

ExcelStorTechnology, a Great Wall subsidiary, will manufacture the 40 GByte version of IBM’s newly released Deskstar 120GXP desktop drive, and IBM will sell it under the IBM brand. ExcelStor also will develop and market the drives under its own brand through an intellectual property license from IBM.

The first drive is expected to roll off the assembly line in the second half of 2002. Financial terms of the three-year agreement were not made public.

According to IDC, a research company, China’s information technology spending is expected to increase 25% over the next few years, while IT growth in the general Asian-Pacific region is expected to top 12%.

This agreement makes ExcelStor the first native Chinese company to manufacture hard disk drives for IBM and to market drives under its own brand. The new plant is expected to generate more than 3,000 new jobs in the Shenzhen area of Southern China where the plant will be located.

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