Chinese Telecom ZTE confirms investment in Hortolândia
O Estado de S. Paulo
The Chinese telecommunications equipment manufacturer ZTE confirmed it will invest in a high-tech industrial park in Hortolândia, São Paulo, and it will also put up the first facility of research and development of the company in Latin America. In an announcement, ZTE informed the agreement was signed by the Mayor of Hortolândia, Ângelo Perugini, in the presence of President Dilma Roussef, who is visiting China this week, and the Chinese President, Hu Jintao.
The industrial park includes a Research and Development Center, a productive unit, a training center and a logistics center. According to the Chinese company, the value of the investment has not yet been concluded, but it will be made through its locally registered unit, ZTE do Brasil. The company has nearly 600 employees in the country. An insider has previously told Dow Jones the industrial park should generate nearly 2,000 local jobs.
Since it does not have its own manufacturing plant in Brazil, ZTE works together with local partners. "The unit will be responsible for catering to South America as a whole and it will consolidate Brazil as the operational center of the region", said Yuan Lie, President of Operations of ZTE in the announcement. The investment reflects the ambition of ZTE of growing outside its home market. Although it is a major international supplier of telecommunications hardware, the company has faced political opposition to its plans to expand in regions like the USA, Europe and India.
Last year, the total income of ZTE totaled 70,264 billion Yuans (US$ 10.7 billion). The income from international operations increased 27.5%, to 38,066 billion Yuans, and it was responsible for 54.2% of total operating income. Besides equipment for telecommunications, the company makes wireless devices such as cellular phones and tablets. ZTE is the fourth largest manufacturer of telecommunications equipment in sales in the world, behind Nokia Siemens Networks, Telefon AB L.M. Ericsson and the Chinese Huawei Technologies.