Xerox to Sell China Operations for $550 Mil

STAMFORD, CT-The entire operations of Xerox Corp. in China, which includes 1,500 employees, is earmarked for sale to Fuji Xerox for $550 million. The deal was revealed Dec. 14 by Xerox, based here, which is engaged in an asset disposition program that began this past October. Fuji Xerox is an $8-billion corporation with 30,000 employees in the Asia Pacific and Pacific Rim and is a joint venture of Fuji Photo Film Co. Ltd. and Xerox Corp.

Commenting on the deal, Xerox chairman and CEO Paul A. Allaire, says, “Our asset disposition initiative, designed to raise $2 billion to $4 billion is on track. The first of those sales, Xerox China operations, is ahead of schedule. And our $1-billion cost reduction program is on target. We will announce additional actions that will improve our liquidity as they are agreed.”

Xerox officials note that the company began marketing its products in Hong Kong in 1964 and entered China in 1980. In 1990, the company formed Xerox (China) Ltd. to hold the company’s Mainland China interests which included wholly owned subisidiares and joint ventures. The company posted 1999 sales of $200 million.