Huawei announces the upcoming construction of a factory in France to produce 4G and 5G network equipment. The manufacturer plans to invest more than 200 million euros in the project. In addition, it hopes to produce more than 1 billion euros per year from the product’s sales. The location where the plant would be located has not been released.
Huawei to open a 5G factory in France, first outside Asia
When built, it will be the manufacturer’s largest factory outside of China. The project should create 500 direct jobs. Huawei explains that France is “one of the most advanced production centers”. This is thanks to an “educated workforce and its ideal geographic position for Huawei”. And the group added that “this production unit will be added to the value of Huawei’s integrated chain in Europe. The goad is to improve the delivery times and reliability of Huawei’s deliveries for its European customers”.
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In addition to the network equipment, the factory could “develop other products in the future, depending on the needs of the European market”. However, for the moment, Huawei is careful not to give any information. In particular, the place chosen for this factory or the horizon to which it would open its doors. A Huawei executive Liang Hua explains that he is in discussion with the French government around the project.
The initiative is similar to a seduction operation to increase the market share of its network equipment on the European continent. Huawei must indeed deal with the pressure from the United States on its allies so that they do not use the firm’s equipment to deploy their 5G network. This has led most European countries to adopt a suspicious posture, without however yielding to American pressure.
For the time being, these disturbances have however led European operators to prefer Nokia and Ericsson instead. Huawei retains a certain technological advance on this type of equipment, in particular on core 5G network equipment, which makes it the biggest 5G manufacturer.