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Giesecke & Devrient Founds Joint Venture With Russian Technology Group KNC

Thursday 19 May 2005 13:55 CET | News

International technology group Giesecke & Devrient (G&D) is expanding its smart card activities in Russia as well as neighboring countries that belong to the Commonwealth of Independent States (CIS) by entering into a joint venture with Russias Concern Nauchny Center (KNC).

Representatives from both companies gathered in Moscow to sign the cooperation agreement. Before the end of this month, joint operations will begin in Zelenograd/Moscow. In addition to production and personalization of smart cards, the enterprise will develop and market smart card-based applications and system solutions. Its product portfolio will comprise SIM cards for mobile telephones, payment cards, and identification cards for industry and government projects. The Russian Federation, with its 145 million inhabitants and predicted annual economic growth of 6.5 percent, represents an attractive market, particularly when it comes to smart cards. For example, only one out of every four citizens currently owns a mobile telephone. According to a recent study, by 2008, more than 75 percent of the population will be placing calls using cell phones. The process known as EMV migration, in which payment cards are being converted from magnetic stripe to chip technology, has also barely gotten off the ground. The market volume for Russia alone amounts to over 100 million cards. Also of considerable importance is the fact that a number of major smart card projects in the government sector are expected to begin in coming years.


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