Corporate News
Willas-Array Expands Into South Korea Through Joint Venture
Willas-Array Electronics (Holdings) Limited ("Willas-Array"), one of the largest Hong Kong-based distributors of electronic components in the Asia Pacific region, today announced that it has formed a joint venture to launch its forays into South Korea.
The joint venture company, Willas-Array (Korea) Hong Kong Ltd, will have a paid-up capital of US$1 million with Willas-Array holding an equity stake of 70 per cent while its Korean partners the remaining 30 per cent.
The joint venture company has been awarded, in principle, distributorship by STMicroelectronics Asia Pacific (Pte) Ltd for its products in South Korea.
"We have been excited about the market potential of South Korea for awhile and when the opportunity came for us to join forces with established partners, we seized it. We are also very glad that we have gotten the approval of STMicroelectronics, who will be our first principal. We will definitely be actively seeking for more principals to represent," said Mr Lawrence Leung, Executive Chairman of Willas-Array.
According to Mr Leung, the Korean partners have been in the electronic components distribution industry for more than 20 years.
Mr Leung added, "They are well respected in the components distribution community in South Korea for their knowledge and experience. Besides knowing the South Korean market and having an extensive network of contacts, they also have engineering design capabilities that will allow them to pro-actively undertake design and application for customers. We believe they will be able to increase the market penetration of STMicroelectronics products in South Korea and help Willas-Array establish a strong market presence there."
Based on statistics from Gartner Inc, the components distribution market in South Korea is worth some US$10 billion and is projected to grow in line with the global industry growth of 16% in 2002. Currently, besides Willas-Array, STMicroelectronics has 2 other distributors in South Korea.
Willas-Array has received the "Top Distributor in Hong Kong/PRC" award from STMicroelectronics for four consecutive years from 1997 to 2000.
For more information, please contact:
Mr Andy Hung, Chief Financial Officer
Willas-Array Electronics (Holdings) Limited
Tel: 852 2418 3838
Email: andyhung@willas-array.com
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Established since the early 1980s, Hong Kong-based Willas-Array is principally engaged in the distribution of active and passive electronic components for use in the audio/video, telecommunications, industrial, consumer and computer segments. Backed by long-standing relationships with over 20 reputable Principals, Willas-Array carries a wide product mix distributing and marketing in excess of 10,000 product items which cater to over 2,000 active customers. Its main markets are in Hong Kong and the PRC.
In the PRC, Willas-Array has established a network of representative offices strategically located in Beijing, Guangzhou, Shanghai, Shenzhen, Qingdao, as well as an Application and Development Division in Guangzhou. It is in the midst of establishing a subsidiary in the Free Trade Zone within Shanghai that will serve as a logistics centre for the Group in China
