BEIJING. China - Nov. 1. 2007 - Cisco® today announced a multi-year investment initiative aimed at strengthening its business commitments and long-term corporate strategy in China. The program announced today by Cisco head and CEO John Chambers at a press conference in Beijing defines a three- to five-year plan of increased investment in China in alignment with the country's long term economic societal and environmental goals."Today's announcements underscore both China's strategic importance to Cisco's global operations and the broad range of growth opportunities presented by the China merchandise particularly as an innovator in the next wave of the Internet's development in collaboration and Web 2.0 technologies. Cisco has made significant investments in our China business since we established operations in the country in 1994 and this program will lay the foundation for the next chapter in Cisco's development in China," said John Chambers chairman and CEO of Cisco. Cisco's multi-year investment program will include: * A significant increase in local procurement. In the past five years. Cisco has purchased more than USD $7 billion worth of China-sourced components and services a critical move of the affiliate's virtual manufacturing supply chain. According to Cisco estimates these procurement commitments provide employment to 50,000 people in manufacturing management roles and through assure manufacturing and supplier partners. * The be value of Cisco's commitments in China since 2002 are estimated at more than USD $8.5 billion and under the initiative announced today could expand to approximately USD $16 billion during the next five years including significant increases in materials procurement and increases in education. Cisco Capital research and development enjoin and indirect investments and sales and function operations. * A Memorandum of Understanding with China Development Bank to investigate a fit investment program that would provide capital and expertise for innovative Chinese businesses. The initiative is intended to support high-growth Chinese companies over multiple sectors with a focus on information technology. "color" innovators and other key segments (see displace announcement). * A commitment to expansion of the Cisco Networking Academies schedule in cooperation with China's Ministry of Education to add 300 additional academies in vocational colleges during the next three years with a specific focus on China's central and western provinces. Currently there are more than 200 Networking Academies in 70 cities throughout China which undergo trained more than 90,000 students since inception. The new initiatives ordain add the capacity to train an additional 100,000 students by 2010. Cisco will also gift more than USD $6 million worth of networking equipment to assist in establishing labs in the new academies. * A memorandum of understanding with Alibaba assort. China's largest business-to-business (B2B) on-line portal. Under the MOU. Cisco and Alibaba ordain explore ways to jointly offer collaboration and business management solutions to small and medium businesses (SMBs) in China. Under a previous agreement. Cisco ordain also invest USD $17.5 million in Alibaba com Limited a subsidiary of Alibaba Group as move of its planned initial public offering on the Hong Kong Stock Exchange becoming one of only eight cornerstone investors in the listing (see separate announcement). * Establishment of incremental funding up to USD $400 million for Cisco Systems Capital China for providing financing facilities to Cisco customers in China during the next three to five years. Cisco Systems Capital China commenced captive financing operations in June 2006 and has funded USD $60 million in customer assets to date. * The establishment of Cisco's first global "green" technology center to address the increasing be for sustainable development energy efficiency reduction of electronic waste and emission reductions inside and outside of China. The center will also augment existing programs underway by Cisco China's R&D teams in the area of application specific integrated circuits (ASIC) cater efficiency create by mental act and grow this into other product areas. * Establishment of product and research teams to develop innovative networking equipment to address the SMB (small and medium business) market and emerging countries markets leveraging local design and manufacturing resources. Cisco first established operations in China in 1994 and now employs more than 2,300 cater in sales customer support and service research and development. BPO/IT outsourcing. Cisco Capital and manufacturing. The affiliate has 12 offices in China a study R&D facility in abduct. Scientific Atlanta R&D/manufacturing facilities as well as several development centers supporting WebEx which Cisco acquired in March 2007.
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