Huawei to invest $800 million to build a new plant in Brazil
Chinese tech giant Huawei Technologies Co Ltd intends to build a new plant in Brazil. The project, which will be built a factory in são Paulo state, will require investments of $800 million over the next three years. Thus, the Chinese manufacturer intends to increase its presence in Latin America.
The construction of a new plant announced by the Governor of the state of são Paulo joão Doria (Jo?o Doria) during his visit to China. He also noted that the construction of the plant should help Huawei to meet the demand, the growth of which is expected after the auction of the spectrum 5G in Brazil, scheduled for March 2020.
The report said that the future plant will produce smartphones, which will arrive on the domestic and foreign markets. It should be noted that currently, Huawei already has a plant in Sao Paulo. The company employs about 2,000 employees and its main field of activity is manufacturing of telecommunications equipment. Location of the new factory Huawei, which, according to the Governor, will run for 1,000 people, will be determined in the coming months.
Despite calls by the American government to avoid cooperation with Huawei, a few States decided to abandon cooperation with the Chinese company. However, the limitations on the US market forced Huawei to strengthen its position in other regions of the world. As regards Brazil, in July of this year, Vice-President Hamilton Murao (Hamilton Mour?o) said that the government does not intend to prohibit the use of telecommunications equipment Huawei. It should also be said that Ericsson and Nokia also have their own factories in Sao Paulo. This means that the deployment of 5G networks in Brazil, Huawei will have to wait for a serious competition.