ChinaCache International Holdings Ltd., the leading total solutions provider of Internet content and application delivery services in China, today announced that ChinaCache Xin Run Technology (Beijing) Co., Limited ("Xin Run"), in which ChinaCache holds 40% equity interest, has entered into definitive agreements to form a joint venture ("JV") with Henan Zhongfu Industrial Corporation ("Zhongfu") (600595.SH). The JV will be incorporated under the name of Henan Zhongfu ChinaCache Technology Co., Ltd. and will be 85% owned by Zhongfu and 15% owned by Xin Run. Zhongfu is an international enterprise with fine processing and manufacturing of aluminum as its core business and has a complete industry chain of coal, power and aluminum. Zhongfu is listed on the Shanghai Stock Exchange with total assets of approximately RMB26.0 billion as of September 30, 2015.
The JV will be formed to take advantage of the low-cost land and electric resources in Gongyi city, Henan Province in China, to develop Internet data centers to tap into the growing demand for IDC services in the region. Zhongfu agrees to contribute land, electricity and the majority of capital to the joint venture, and Xin Run agrees to primarily provide expertise in the areas of data center technology, market development, project management and data center operating and maintenance services.
Mr. Song Wang, CEO and Chairman of ChinaCache commented, "We are very pleased to form the JV with Zhongfu to jointly develop competitive Internet data centers in Henan Province and tap into the increasing demand for IDC services in that region. This JV is part of our long term strategy to build the first data center network (DCN) with our Internet Exchange (IX) in China to realize interconnection between Internet Service Providers (ISPs) and Content Providers (CPs). We believe our vast experiences in the CDN industry, combined with our DCN strategy, position us well to achieve long term growth and enable Zhongfu to complete their strategic transformation. In addition, the JV will leverage Zhongfu's existing resources to build CCHP (Combined Cooling Heating and Power) supply system and an environmentally friendly ecosystem in the data center industry."