Superconductor Technologies Inc. (STI), a provider of high performance infrastructure products for wireless voice and data applications, announced it signed a binding definitive agreement for a joint venture with Hunchun BaoLi Communications Co. Ltd. (BAOLI) to manufacture and market STI's SuperLink® interference elimination solution for the China market.


The joint venture will be called Hunchun BaoLi Superconductor Technology Co. Ltd. (HBST) and will be registered in Jilin Province. Products will be manufactured initially in Shenzhen and ultimately in the Commercial Cooperation Zone located in Hunchun City, Jilin Province. The sales and marketing division will be based in Shenzhen.

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"This new joint venture combines our extensive track record as a wireless communications solutions provider with STI's field proven capabilities in eliminating interference and increasing base station sensitivity," said QiangHua Shao, general manager of BAOLI. "We believe our partnership with STI will enable cost reductions on a scale that makes SuperLink® competitive in the Asian marketplace. We will now forge ahead with our plans to capitalize on the benefits of combining STI's technology and our manufacturing and supply chain capabilities."

"This agreement represents a major milestone in STI's strategy to expand its target markets and capitalizes on the progress we have made validating our solutions with the major North American carriers," said Jeff Quiram, STI's president and CEO. "The unique advantages our technology offers are particularly well-suited to solve the interference and filtering challenges of China's 2G and 3G networks. STI is honored to be partnering with BAOLI to supply China's wireless market with solutions to optimize network performance."

Under the terms of the agreement, STI will provide an exclusive license in the China market of the enabling technology and BAOLI will provide the manufacturing expertise and financing.

BAOLI holds 55 percent of the equity in the joint venture. STI holds 45 percent and will receive a royalty on sales. The details of the royalty payments and the licensing terms were not disclosed.

BAOLI and STI have already started working with China's Ministry of Information Industry and related organizations, including the National Radio Administrative Bureau, to conduct technical evaluations and testing activities in China and with Chinese wireless operators such as China Telecom, China Mobile, Netcom, Unicom Railcom and SATCOM.