Motorola chooses Brazil and China as manufacturing centers and increases capacity of Brazilian factory by 40 pct

23 August 2006

Sao Paulo, Brazil, 23 Aug – U.S. mobile phone company Motorola chose Brazil and China as manufacturing centers to meet a large part of the worldwide demand for cellular phones and increase competitiveness, said Motorola chairman and CEO Edward Zander, in a meeting with Brazilian press.

The company’s Brazilian factory, located in Jaguariúna, Sao Paulo, is 10 years old this month and during this period Motorola invested US$ 500 million in the factory and over US$ 227 million in research and development.

This year the company plans to increase the production capacity of the factory by 40 percent with the aim of doubling exports, which in 2005 came to US$ 1.06 billion.

During the seven ending in July, the Brazilian subsidiary of Motorola sold over US$ 700 million in mobile phone and Edward Zander said there are still many growth opportunities in Brazil. The CEO cited data from Brazil’s National Telecommunications Agency (Anatel), which showed mobile phone penetration in Brazil has reached 49 units per 100 inhabitants.

Zander also said that “it’s not any potential change in the exchange rate that is going to alter the strategy of the company”, which has made its Jaguariúna factory a center for exports, especially to Latin American countries. (macauhub)