Huawei looks to Europe not only for the sale of tech products, but also for production: it has announced the creation of its own first production plant in the Westbuilding a factory for 5G equipment in France. A few months after the risk of a ban by the European Union, the Chinese company will build a factory near Strasbourg.
Huawei will build its first factory in France
According to sources cited by Reuters, the company is taking its first steps to strengthen its presence in Europe despite the uncertain climate surrounding it. The decision to establish itself in France comes at a time when the company’s position remains complex. Especially after that the European Union supported the ban on Huawei and ZTE equipmentjust this summer.
However, the company appears intent on proceeding with its plan to build a factory in Brumath, near Strasbourg. Almost as if they wanted to demonstrate their “closeness” to the EU. It is expected that this structure will create over 500 long-term jobsas stated by the deputy director of Huawei France.
A long journey towards this result
Huawei’s move towards creating its own first factory abroad in France it was first mentioned in 2020with an initial investment of 200 million euros. Despite this, the pandemic COVID-19 resulted in a slowdown in the company’s plans.
The French authorities expect the facility to open by 2025with the perspective of stimulate the local economy and generate new job opportunities. However, the fact that work has yet to begin has sparked rumors of potential delays in the implementation of the project. The 2025 target may require careful consideration, depending on when construction actually begins.
Minggang Zhangdeputy director of Huawei France, has described the plant as “ultramodern”, and as reported by Android Headlines it will serve customers across Europe with 5G equipment. The expected production is 1 billion euros of products per year and is expected to be created 500 long-term jobs.
Will Europe’s approach to Huawei’s 5G change?
France’s position towards Huawei has been mixed. In the 2020the country has limited the adoption of the Chinese company’s 5G technology, prohibiting operators from renewing equipment licenses. This decision initially excluded Huawei from French mobile networks. However, a recent meeting in Beijing marked a significant change: after talks between the French Economy Minister Bruno Le Maire and the Chinese vice premier He lives, an unexpected extension of the Huawei’s 5G licenses in some cities.
The deputy director of Huawei France also confirmed the collaboration with the National Agency for Information Systems Security to establish a relationship of trust. This initiative takes on particular relevance considering that China represents the France’s third trading partnerimmediately after the European Union and the United States.
Although geopolitics have made it more difficult for Huawei to work in Europe and the USA, due first to the US bans and then to European doubts, the company has renewed commitment to bring products to the EU. This year we have seen the launch of several consumer electronics products, along with many solutions for businesses. The new French factory seems to underline that these announcements are just the beginning of a relaunch of Huawei in the West.