The Beijing-based Tsinghua Tongfang Co., a hi-tech firm specializing in Internet services and software products, is entering the competitive Digital Versatile Disc (DVD) market, China Daily reports on January 4.

The move heralds Tongfang's entry into the production of consumable electronic products in the coming years, said Zhang Zhicheng, general manager of the company.

Previously, the company focused its business on investment- orientated products, such as the development of disc and application software.

Zhang's decision to enter the new field is based on advice from the Tsinghua University, the founder of the company, and the State Disc Engineering Research Center.

The disc center merged with Tongfang in 1997 and was transferred into a subsidiary of the company, infusing fresh capital to Tongfang's disc production.

Tongfang will use advanced DVD-related technologies developed by the center while adjusting its production to the current global trends. It plans to turn out 500,000 DVD players in 2000. Around 300,000 will appear in the domestic market beginning this month, along with 500 new disk programs.

The remaining 200,000 will be sold overseas. The American Apeks International Co. has ordered 150,000 from Tongfang for sale in the United States.

In 1999, the company earned 1.6 billion yuan (192 million US dollars) from sales, swelling its total asset volume to 3 billion yuan (361.4 million US dollars). (China Daily)