China’s Huawei to invest $800 million in new Brazil factory

SAO PAULO (Reuters) – Huawei Technologies Co Ltd plans to build an $800 million plant in Brazil’s Sao Paulo state over the next three years, the governor said, as the Chinese tech giant ramps up its Latin American presence against U.S. objections.

FILE PHOTO: People look at products at the Huawei stall at the International Consumer Electronics Expo in Beijing, China August 2, 2019. REUTERS/Thomas Peter

On a trip to China on Friday, Sao Paulo Governor João Doria, accompanied by Huawei executives, said the company was gearing up to build the plant to meet expected demand following Brazil’s first 5G spectrum auction, scheduled for March 2020.

The new factory is likely to produce smartphones, the company told Reuters in an email. “Depending on the performance of the smartphone operation in the local market, Huawei will consider building a plant in Sao Paulo in the near future,” it said in a statement.

Production would be for domestic and foreign markets, according to the Sao Paulo government.

Huawei, which has been operating in Brazil for 21 years, already has one factory producing equipment for telecoms infrastructure in Sao Paulo state, with 2,000 employees.

The location of the new plant, which according to Doria will employ 1,000 people, will be decided in the coming months and the $800 million will be invested over a three-year period following the upcoming 5G auction.

In April, Reuters reported that the Chinese company was making a second attempt at cracking the Brazilian smartphone market with the launch of two high-end handsets and local hires to manage the business.

Huawei, the world’s third-largest smartphone manufacturer, imports handsets from China for the Brazilian market and has mulled local production.

U.S. President Donald Trump has urged governments worldwide to shun Huawei, arguing its equipment could be vulnerable to Chinese eavesdropping.

So far, few have heeded the warnings, but limitations in the U.S. market have pressured Huawei to strengthen its footing elsewhere.

Trump raised the Huawei issue during a visit by Brazilian President Jair Bolsonaro to the White House in March. But Vice President Hamilton Mourão said in June that Brazil had no plans to bar Huawei from its 5G network.

U.S. diplomats did not immediately respond to a request for comment.

Sweden’s Ericsson and Finland’s Nokia Oyj also have factories in Sao Paulo state and are racing to lead 5G deployment in Brazil.

Ericsson and Nokia have not responded to a request for comment on Huawei’s push into region.

Reporting by Gabriela Mello; Additional reporting by Eduardo Simões in Sao Paulo; Editing by Brad Haynes, Steve Orlofsky, Dan Grebler and Richard Chang

Source link

more recommended stories

  • France delays signing of Internet pledge amid U.S. pressure

    BIARRITZ, France (Reuters) – France delayed.

  • Trump says U.S. would tax French wine in response to digital tax

    U.S. President Donald Trump speaks with.

  • App looks to get tips from coffee drinkers to Colombia growers

    BOGOTA (Reuters) – An app that.

  • U.S. House lawmakers ask regulators to scrutinize bank cloud providers

    WASHINGTON (Reuters) – Two U.S. lawmakers.

  • VMware to pay $5 billion for firms offering cloud security, developers platform

    (Reuters) – VMware Inc said on.

  • Volkswagen not interested in buying Tesla stake

    FILE PHOTO: Volkswagen AG CEO Dr..

  • Splunk to buy cloud software firm SignalFx in $1 billion deal

    (Reuters) – Data analytics software maker.

  • Ahead of G7 summit, Macron presses U.S. to help reform taxes on big tech

    FILE PHOTO: French President Emmanuel Macron.

  • Citigroup, BNP caught up in U.S. case against Huawei CFO: documents

    NEW YORK (Reuters) – U.S.-based Citigroup.

  • Intel unveils first artificial intelligence chip Springhill

    FILE PHOTO: Computer chip maker Intel’s.

  • Chinese smartphone maker Xiaomi posts 15% rise in sales, misses estimates

    FILE PHOTO: Xiaomi branding is seen.

  • Sony to buy ‘Spider-Man’ developer Insomniac Games

    FILE PHOTO: The logo of Sony.

  • U.S. grants Huawei another 90 days to buy from American suppliers

    WASHINGTON (Reuters) – The United States.

  • Shell debuts electric vehicle chargers in Singapore, first in Southeast Asia

    FILE PHOTO – A sign is.

  • Exclusive: U.S. set to give Huawei another 90 days to buy from American suppliers – sources

    SINGAPORE/WASHINGTON (Reuters) – The U.S. Commerce.

  • Alibaba and the $15 billion question: Amid Hong Kong’s protests, when to list?

    HONG KONG (Reuters) – Hong Kong’s.

  • Exclusive: U.S. to extend Huawei’s partial reprieve on supply curbs – sources

    SINGAPORE/WASHINGTON (Reuters) – The U.S. Commerce.

  • China’s Ninebot unveils scooters that drive themselves to charging stations

    BEIJING/HONG KONG (Reuters) – Segway-Ninebot Group,.

  • Amazon.com defeats IRS appeal in U.S. tax dispute

    (Reuters) – Amazon.com Inc on Friday.

  • Rental firm walks away from Tesla order after quality dispute

    FRANKFURT (Reuters) – Car rental company.

  • STAR Market tech board offers hope to Chinese venture capitalists

    SHANGHAI/HONG KONG (Reuters) – When Chinese.

  • Nvidia revenue tops expectations on strength in video gaming, auto units

    (Reuters) – Nvidia Corp’s quarterly revenue.

  • Online spending helps UK retail sales grow unexpectedly in July

    LONDON (Reuters) – British retail sales.

  • China’s Lenovo first-quarter profit more than doubles on record PC market share

    (Reuters) – Chinese PC maker Lenovo.

  • FCC chairman circulates order to approve Sprint, T-Mobile tie-up

    FILE PHOTO: A smartphone with Sprint.

  • U.S. aviation regulator bans select MacBook Pro laptops from flights

    FILE PHOTO: Apple company logos are.

  • Facebook paid contractors to transcribe users’ audio: Bloomberg

    FILE PHOTO: Attendees walk past a.

  • Exclusive: Google’s jobs search draws antitrust complaints from rivals

    BRUSSELS/SAN FRANCISCO (Reuters) – Google’s fast-growing.

  • Colombia fines Uber more than $629,000 for obstructing regulatory visit

    BOGOTA (Reuters) – Colombia’s commerce regulator.

  • Deliveroo quits Germany to focus on other markets

    FILE PHOTO: A biker wearing a.

  • Russia tells Google not to advertise ‘illegal’ events after election protests

    MOSCOW (Reuters) – Russia’s state communications.

  • Tesla electric car catches fire after hitting tow truck in Moscow

    Joe Young, media relations associate for.