Shinva Medical Instrument (SHA: 600587) and GE Healthcare will form a medical device JV, called Xinhua GE Medical Systems, with a total investment of $25 million. The new company will focus on diagnostic X-ray equipment and be involved in R&D, manufacturing and sales. It will also develop additional equipment and software. Under the agreement, Shinva will hold a 51% stake of the new company, and GE will hold the remaining 49%.

The JV will have a registered capitalization of $10 million. It will be located in Zibo, Shandong Province.

The new venture will be the fourth JV that GE Healthcare has established in China since it became involved in the country in 1979. Last year, GE Healthcare had revenues of $17 billion worldwide, and in 2005, it realized $700 million in China revenues. GE Healthcare claims to have been the first multinational healthcare company in China and is now its largest producer of medical devices. The company has a two-tier strategy in China, providing low and middle end products for China's rural areas and higher technology devices for urban areas. Approximately 10% of GE Healthcare's employees live in China.

Shinva Medical, with 60 years of experience in medical devices, produces sterilizers, radiotherapy equipment, digital diagnosis equipment, surgical instruments, disposable syringes, environmental protection equipment for medical use, and sterilization testing products.