Huawei, Flextronics to jointly establish plant in Hungary

Recycling

Chinese telecommunications equipment maker Huawei and contract electronics manufacturer Flextronics will establish a joint plant in the Hungarian city of Pécs, Huawei Technologies Hungary managing director Gavin Dai said at a press conference on Monday.

Production at the plant, which will make optical network equipment, will start in December, Mr Dai said. By mid-2012, about 500 people will work at the plant, he added.

Flextronics Global Services Hungarian director Tibor Czakó said the two companies already cooperate in China, Brazil and Mexico, and now the partnership is coming to Pécs (SW Hungary).

More than 12,000 people work at four Flextronics bases in Hungary: in Zalaegerszeg, Sárvár, Tab and Budapest.

Huawei earlier worked with Elcoteq in Pécs, but the Finnish company recently filed for bankruptcy.

Huawei's and Flextronics' plant will make its first delivery to Huawei on December 5. By the end of 2011, headcount at the plant will reach 100, but a further 400 could be hired later on depending on orders.

The plant will not be a greenfield investment, rather existing infrastructure will be rented.

Flextronics and Huawei would reveal no further details about the partnership.

In press materials distributed by Huawei, the company said it would "keep the original target of generating revenue of USD 1.2bn in Hungary by the end of 2011 with just a few weeks delay".

ADVERTISEMENT

Czech economic confidence weakens in September Analysis

Czech economic confidence weakens in September

Parl't extends pandemic legal provisions Parliament

Parl't extends pandemic legal provisions

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.