SAO PAULO (Reuters) – Huawei Technologies Co. Ltd. plans to build an $800 million plant in Brazil’s Sao Paulo state over the next three years, the governor said: “as the Chinese telecom giant ramps up its presence in Latin America, in spite of U.S. objections.
FILE PHOTO: People look at products at the Huawei booth at the International Consumer Electronics exhibition in Beijing, China, August 2, 2019. REUTERS/Thomas Peter
In an audio recording of a press conference held in China on Friday, the Governor of São Paulo, João Doria, accompanied by latest Huawei executives said the company was gearing up to build the plant in order to respond to the anticipated demand for the next in Brazil for the first 5G, the spectrum auction-scheduled-for-March-2020.
Huawei already has a plant in Sao Paulo, brazil, serving more than 2000 people directly. Huawei will have to decide on the location of the plant within the next few months, and it expects to invest as much as $800 million over a period of three years from the 5G auction is completed, the governor added in a statement.
It was not immediately clear if the facility will be dedicated solely to 5G technology, according to two sources with knowledge of Huawei’s plans.
In April, Reuters reported that a Chinese company was making a second attempt to crack the Brazilian smart phone market with the launch of two high-end devices, and to hire people who are local and for the management of the business.
Initially, the handsets would be imported from China, the world’s third-largest smartphone manufacturer, had been mulling local production.
The US President, Donald Trump has urged governments around the world to stay away from Huawei, stating that the devices could be vulnerable to the Chinese, has been changed. So far, few have listened to the warnings.
He is the issue of Huawei, during the visit of the Brazilian President, Jair Bolsonaro, to the White House, and at the end of March. But, Vice-President of the Hamilton Mourão said in June that Brazil had no plans to bar Huawei from the 5G network, says the government in trust for the company and for the country to have the technology.
Rivals noted that Huawei, in particular, are under pressure to make its presence in the emerging markets, such as Brazil and Russia, given that it was shut out of the United States of america, noting that the Chinese company has looked the most likely to take advantage of the tax benefits of the São Paulo state.
Under the terms of the agreement, the Governor, João Doria said, Huawei will have to invest in the state Institute for technical Research, between 2020 and 2022, as well as in the public education system.
The new plant will produce for both the market and the other countries in South America, the Sao Paulo government, he said.
Sweden’s Ericsson and finland’s Nokia Oyj have also production plants in Sao Paulo state, and in the race to lead the 5G deployment in the country.
Ericsson and Nokia do not immediately respond to Reuters ‘ request for comment.
Editing by, Steve Orlofsky and Dan Grebler