?HONG KONG — Syntax-Brillian Corp., a U.S. maker of high-definition televisions, said Monday it signed an agreement with five Asian companies to create a joint venture that will produce liquid crystal display TVs in China.

Financial terms of the agreement, which involves Taiwanese, Hong Kong and mainland Chinese companies, weren't disclosed.

The joint venture, called Nanjing Huahai Display Technology Co., will manufacture the LCD televisions in China's southeastern city of Nanjing. It will also conduct research, market and distribute Syntax-Brillian's Olevia brand televisions in the Asia-Pacific region, the company said in a statement.

The joint venture should be able to offer consumers cheaper LCD televisions, said Chief Executive and Chairman Vincent Sollitto, Jr.

"Being that we aren't a Chinese company, we have to pay valued-added tax, which raises the price for the consumer," Sollitto said. The joint venture "should give the consumers an opportunity to enjoy that price break," he said.

Sollitto didn't disclose how large a stake the Tempe, Arizona-based company would hold in the joint venture, saying only it would be a "minority" owner.

The company will be sharing profits and receiving up to 5 percent of total revenue from the joint venture in the form of royalty payments for the design and Olevia brand, he said.

The other companies in the consortium are China-based Sinotide Technology Inc. and Five-Star Electronics Corp.; Taiwan-based TCV Technology Inc. and Taiwan Kolin Co.; and Hong Kong-based South China Technology Inc.

The Nanjing plant is scheduled to begin production in July with an initial production capacity of 150,000 LCD televisions. The joint venture has the eventual aim of raising output capacity to 300,000 units.

Sollitto said demand for LCD televisions remains strong and, with the rapid decline in LCD panel prices, more affordable sets will be available to consumers by the end of this year.

"It's going to be a very, very good year for the consumers in terms of seeing panel prices dropping to where televisions are more affordable," said the executive. "I think you will see that US$2,000 line broken before the end of the year for 42-inch" televisions.

Syntax-Brillian plans to beef up its advertising efforts to gain more brand recognition across Asia to better compete with market leaders such as Sony Corp. and Sharp Corp., said the executive.