According to a Wall Street Journal Report Chinese telecommunications equipment maker Huawei Technologies Co. is planning to build or buy a plant to build handsets and tablets in Brazil, as it expects a significant shift in sales, the chief executive of Huawei Brasil said Monday.
Huawei mostly prefers to use third-party manufacturers, such as Flextronics International Ltd. (FLEX) and Foxconn International Holdings Ltd. (2038.HK), to build its equipment in Europe and Latin America, but because of the complexities of operating in Brazil, and taxes in particular, the company is looking at owning its own facilities, Li Ke told reporters on the sidelines of the Futurecom conference.
The company hasn''t ruled out the acquisition of a local manufacturer instead of starting from scratch, he said.
Huawei's first mobile handset produced in Brazil has just rolled off the line at a local Flextronics plant, and the first tablet will be made in the first half of 2012, Li Ke said.
Huawei's manufacturing partners are already producing most of the telecoms infrastructure equipment that it sells in Brazil to mobile telephone operators, to build out their networks. |