In a strategic move to fortify its global economic position, Huawei Technologies is gearing up to construct a state-of-the-art mobile phone network equipment factory in Brumath, near Strasbourg, France. Originally outlined in 2020, the ambitious plans faced setbacks due to the COVID-19 pandemic, but recent reports indicate that the initiative is back on track.
The Chinese tech giant has invested a substantial 200 million euros (US$215.28 million) in the project, showcasing its commitment to establishing a manufacturing presence in Europe despite challenges in certain markets. The construction, set to kick off in 2024, marks a significant milestone for Huawei’s expansion strategy in the region.
According to a French government source, the facility is anticipated to be operational by 2025, contributing to local economic growth and employment opportunities. However, given the delays in construction commencement, there is speculation that the timeline for completion might be adjusted accordingly.
The decision to build the factory comes against the backdrop of the French government’s stance on Huawei’s 5G equipment licenses. In 2020, the government communicated to telecom operators that they could not renew Huawei 5G licenses upon expiration, signaling a move to phase out Huawei from mobile networks in the country. However, recent developments indicate an extension of Huawei 5G licenses in some cities following a meeting between French Economy Minister Bruno Le Maire and China’s Vice-Premier He Lifeng.
This move by Huawei aligns with broader debates among European leaders on how to “de-risk” while maintaining cooperation with China. Despite security concerns leading to restrictions on Huawei and ZTE equipment in some European countries, the construction of the French manufacturing plant signifies Huawei’s determination to strengthen its European presence.
The project’s financial investment and employment plans are noteworthy, with Huawei expecting to employ 300 individuals at the facility’s launch, with future projections reaching 500 employees in the long term.
As Huawei proceeds with the construction, the company has chosen to remain silent on specific details about the project. Future updates are eagerly anticipated, promising more insights into the factory’s exact timeline and potential benefits for the region as Huawei continues to make strides in its global expansion efforts.
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(via)
