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Huawei and Elcoteq decrease production at Pécs

The factory of Chinese communication devices producer Huawei at Pécs (S Hungary) is going to work a daily single shift instead of three, and its business partner, Finnish communication equipment maker Elcoteq will seize giving lunch and bus ticket vouchers to its employees from September, MTI learned on Friday.

Huawei officials did not want to deny or confirm the news on a query of MTI.

Huawei employs 90 people at Pécs, and their number should decrease to 30, MTI learned.

Huawei has been present in Hungary since 2004. It operates factories in Komárom (N Hungary) and Pécs, where it makes telecommunication network equipments at the production base of Elcoteq. Huawei has its European distribution center in Hungary and in June still planned to establish its distribution center for West Africa in Hungary.

Elcoteq announced in June that it was unable to pay its debts at maturity because of the world economic crises and because its biggest partner, Nokia, had withdrawn its contract. Elcoteq, which still talks to banks on extending debt maturities, has been present in Hungary since 1998. Its factories at Pécs employed 7,000 people before the crises, but their number is 2,800 now.