The Huawei facility will be located near Strasbourg, according to the report
Chinese vendor Huawei Technologies is planning to start building its mobile network equipment factory in France in 2024, Chinese press reported, citing a source with knowledge of the matter.
The French factory would be the first Huawei plant in Europe, according to the report.
The vendor outlined plans for the factory with an initial investment of 200 million euros ($215.28 million) in 2020. However, the construction of this facility was delayed by the Covid-19 pandemic, the source said.
The source did not give a timeline for when the factory in Brumath, near Strasbourg, will be fully operational.
According to the report, a French government source said the site was expected to open in 2025.
The report also noted that Huawei is moving ahead with this project despite the fact that some European governments restrict or ban the use of equipment made by Chinese vendors Huawei and ZTE over security concerns.
Huawei generated revenues of CNY456.6 billion ($62.5 billion) in the first three quarters of the year, climbing 2.4% year-on-year.
Ken Hu, Huawei’s rotating chairman noted that the vendor will continue to increase its investment in R&D to make the most of its business portfolio and take the competitiveness of its products and services to new heights.
The vendor highlighted that its consumer business achieved revenue growth during the period, without providing specific figures. It added that its digital power and cloud businesses both experienced strong growth during the January to September period.
Huawei also said it recorded a net profit margin of 16% during the period, compared with 6.1% in the same period last year.
“5G has become a new growth engine for mobile operators in the consumer market. For leading mobile operators around the world, 5G now accounts for the majority of network traffic. In particular, video-based applications are changing consumption habits, driving a three- to five-fold increase in network traffic and 10%–25% average increase in ARPU. 5G has also helped mobile communications networks expand into the vertical industry market – one of its biggest differences with 4G,” Hu said during his keynote presentation at MBBF 2023, which took place in Dubai in October.
“Currently, there are more than 50,000 industrial 5G applications worldwide, and more than 10 million 5G connections in industrial settings. Over the past four years, we’ve identified key scenarios for industrial applications, like remote control, video backhaul, machine vision, and positioning, where we can maximize the value of 5G. We have also identified industries like mining, ports, and manufacturing where we can scale up 5G capabilities.”
During MBBF, Li Peng, Huawei’s corporate senior vice president and president of the vendor’s carrier business group, called on global carriers and industry to start working for the provision of future services, which will be provided by 5G-Advanced.
