SyQuest Technology Inc, Fremont, California signed a memorandum of understanding with Legend Group of Hong Kong to create a joint venture to manufacture the SyQuest cartridge disk drives in mainland China. The venture will make SyQuest’s SyJet and EZFlyer removable cartridge hard drives in a 30,000 square foot facility in the Chinese province of Guangzhou; SyQuest will own 60% of the company, and Legend the balance. The majority of SyQuest’s investment will be in the form of capital equipment, inventory and other support. Legend will distribute the SyQuest-branded products in China, while SyQuest will export the joint venture company’s products to the rest of the world. The two are in talks over further collaboration, which could lead to Legend taking a stake in the cash-strapped SyQuest, which has been having a torrid time in the market after Iomega Corp won overwhelming market recognition for its Zip and Jazz exchangeable drives.
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