Chinese group Huawei opens Latin American distribution hub in Brazil

1 June 2012

Chinese group Huawei Thursday opened its Latin American distribution centre, in Sorocaba, in the interior of the Brazilian state of Sao Paulo, where it has invested US$60 million, the Brazilian press reported.

The new centre will store equipment produced under an Original Equipment Manufacturer (OEM) agreement (manufacturing products for third parties), with Flextronics, specifically terminals.

The centre now brings together operations that were spread across 11 regional facilities, which have been closed in order to be integrated into the new unit, and it will directly employ 400 staff and, indirectly another 200 people.

The seven subsidiaries set up in Recife, Curitiba, Rio de Janeiro, Manaus, Brasilia, and São Paulo will continue to operate, but only in retail, sales and logistics.

“We are consolidating our nationalisation strategy and partnerships with local companies,” said Li Ke, Huawei’s president for South America, a unit which includes Brazil, Argentina, Bolivia, Chile, Paraguay, Uruguay, and Peru.

At the end of the third quarter Huawei is due to launch production of third generation mobile phones and tablet PCs in Brazil.

Li Ke noted that investment in Brazil stands was thus far in excess of US$363 million and added that in 2011 alone US$310 million was spent on acquiring products and accessories from Brazilian suppliers.

The group projects that by 2016 it will post turnover of US$5 billion in Brazil, US$1.5 billion of which will be from the business market. (macauhub)