NKF, a leading Netherlands-based cable producer, will inject up to 12 million US dollars in setting up a joint venture with two other local companies in Wuhan, capital of central China's Hubei Province.

According to local sources, the new cable joint venture will cost 17 million US dollars. NKF will hold 60 percent of the equity, while Wuhan Changjiang Telecom Group, and Changfei Optic Fiber and Cable Company will share equally the remaining 40 percent of the equity.

The new joint venture will be situated inside Donghu High-Tech Development Zone in Wuhan and will mainly produce coaxial cables used in mobile telecommunications.

China's mobile telecom industry has been expanding in recent years. By October, mobile phone subscribers totaled 40 million in China.