Newsflash – two companies have created a new joint venture. Bet you never thought you would see that in the high tech sector. This time the companies are LG and Nortel. The partnership was announced in August, but is official today. The new entity, creatively called LG-Nortel Co. Ltd., will work to provide communications and networking solutions in the wireless, wireline, optical and enterprise sectors.
“Today marks the birth of a new breed of telecommunications company,” said S.S. Kim, chief executive officer and vice-chairman, LG Electronics. “By combining the technological know-how and market understanding of two major players in the industry, we are confident we will be able to expedite the introduction of next generation solutions for the benefit of service providers and end users.”
This is the latest and biggest step in a collaboration that has been growing all year. They signed a memorandum of understanding in January and already have successfully pursued contracts together.
The headquarters for this venture will be in South Korea as will R&D and approximately 1,400 employees.