China’s Huawei Technologies plans to start building its mobile phone network equipment factory in France next year, pressing ahead with its first plant in Europe even as some European governments curb the use of the firm’s 5G gear. The company outlined plans for the factory with an initial investment of €200 million in 2020, but the roll-out was delayed by the Covid-19 pandemic. The sources of this news item declined to be identified because they were not authorized to comment on this matter. They also did not give a timeline for when the factory in Brumath, near Strasbourg, will be up and running. Huawei did not respond to a request for comment. A French government source said the site was expected to open in 2025.
The move comes even as some European governments restrict or ban the use of equipment made by Huawei and China’s ZTE, citing security concerns. European leaders are debating how to “de-risk”, and at the same time also cooperate with the world’s second-largest economy. In 2020, the French government told telecoms operators planning to buy Huawei 5G equipment that they would not be able to renew licenses for the equipment once they expire, effectively phasing Huawei out of mobile networks. But following a meeting with French Economy Minister Bruno Le Maire in Beijing in July, China’s Vice Premier He Lifeng said France had decided to extend Huawei 5G licenses in some cities, the South China Morning Post reports.
The China Daily adds that Zhang Minggang, Deputy General Manager of Huawei France, said in a video interview with France Inter, that the plant is expected to be operational by the end of 2025. Zhang said the plant will create 500 local jobs. Huawei said in a statement in 2020 that the factory, its first overseas plant, aims to produce a billion euros worth of mobile network technology solutions for the Chinese telecom equipment maker’s European customers annually. The plant will also have a demo center, showcasing the wireless base station production, software loading and testing process. The center will be open to carriers, governments and related authorities, demonstrating Huawei’s positive stance on Europe’s call for digital sovereignty, Huawei has said previously. Xiang Ligang, Director General of the Information Consumption Alliance, said Europe is an important market for Huawei and it is seen by Founder Ren Zhengfei as a second home for the company. The plant, which will be highly automated and intelligent, can help drive the technical competitiveness of the European industry and boost the resilience of local supply chains as well as infrastructure, Xiang said. Huawei has also announced other projects, such as a research center in Paris, to support digital transformation in the country and the development of cutting-edge technologies such as artificial intelligence, cloud computing and 6G.
