History (1996): SyQuest Joint Venture With The Legend Group in China

SyQuest Technology and The Legend Group, the largest computer manufacturer and distributor in the People’s Republic of China, will both contribute to the capital of a new joint venture company for the manufacture and distribution of SyQuest removable cartridge HDDs and products in China.

Numerous storage companies have tapped into the enormous marketplace that China represents by forming joint ventures with Chinese firms, generally a requirement of the Chinese government. It is not possible to have a wholly-owned subsidiary in the Asian giant.

Of course, the transaction represents an investment in the medium or long term. An accord with Legend will certainly not rescue SyQuest in the short term.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue 104, published on September 1996.