The deal between JCDecaux Pearl & Dean, JCDecaux's operation in Hong Kong, and Chinese outdoor company, Beijing Gehua Cultural Development Group, will see the formation of a new company called Gehua JCDecaux Outdoor Advertising, which will initially develop street furniture in Beijing and potentially other outdoor ad opportunities in the Chinese capital.
The joint venture, equally owned by the two partners, has already signed its first contract, a 12-year sales and marketing contract with Beijing Gehua Sunshine Advertising Company. It will give Gehua JCDecaux the operating rights to 500 double-faced large-format newspaper reading stands, which are already installed in some of the most prominent locations in the heart of Beijing.
With a population of 13m, the Chinese capital, home to the 2008 Olympic Games, spent £122m on outdoor ads in 2004.
Jean-Charles Decaux, CEO of JCDecaux said: "This contract is another example of our commitment to the Chinese advertising market, which has undergone tremendous growth in recent years, a trend we expect to continue. We are looking forward to sharing our know-how and expertise with the city of Beijing as we bring our high-quality products and professionalism to China.
"We believe that our track record of enhancing the world's leading cities with the best of outdoor advertising products, coupled with Gehua's knowledge and understanding of the Beijing advertising market, will ensure the success of this joint venture."
Gehua Cultural Development is a state-owned firm established in December 1997, which grew out of the Beijing Arts Advertising Company that used to operate the very first commercial outdoor billboard in Beijing in the 1970s.
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