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Taiwan's Syscom forges cloud joint venture with Japan's Tokai

[2013/2/22] 17:08:34 by CNA

Taipei, Feb. 22 (CNA) Taiwan-based Syscom Group, a system integration company, announced Friday a joint venture with Japan's Tokai Communications Corp. (Tokai-Com) in cloud computing that will target the greater China market.

The two sides will each invest 200 million Japanese yen (US$2.14 million) to set up a new company in Taiwan in April, Syscom President James Liu said at a news conference in Taipei.

It will provide cloud computing, healthcare cloud, data center and digital communications solutions, as well as system integration services, Liu said.

Tokai President Katsuhiko Tokita, who also attended the press conference, said he has full confidence in the new company because Tokai-Com and Syscom have developed a strong basis of mutual trust through a partnership they have maintained since 2003.

With capitalization of 1.22 billion Japanese yen, Tokai-Com is the largest subsidiary of Tokai Holding Corp., which features a wide range of businesses covering petroleum, real estate, cable television and information communications.

According to Liu, Tokai-Com is planning to move 20 percent of its existing system development business to the new company.

He predicted that the new company will start to turn a profit in 2016, with revenue reaching 1 billion Japanese yen in 2017.

Shen Jong-chin , director-general of the Industrial Development Bureau under the Ministry of Economic Affairs, said the Syscom-Tokai joint venture is significant for business cooperation between Taiwan and Japan.

Japanese companies have felt more assured about investing in Taiwan since the two countries signed an investment protection pact in 2011, Shen said.

(By Lo Hsiu-wen and Y.F. Low)