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Huawei is one step closer to setting up its first overseas manufacturing plant in France, according to sources cited by Reuters. This move signals the company’s bold ambition to deepen its European footprint, even as its stance on the company remains complex. Months after the EU’s industry chief advocated for banning Huawei and ZTE equipment, the company is forging ahead with its French factory in Brumath, near Strasbourg. The facility is projected to create over 500 long-term jobs, said Huawei France’s deputy manager.
Huawei is setting up its first overseas plant in France
Chinese major Huawei first hinted at European plant plans in 2020 with an initial investment of 200 million euros. It is about $215.79 million. However, it soon received a setback due to the COVID-19 lockdown situation.
Officials in France predict the facility will open its doors by 2025. The statesmen also believe it will boost the local economy and create new jobs. But construction has yet to begin, leading some to whisper about potential delays. The 2025 target might need a closer look, depending on when the first shovels hit the ground.
Minggang Zhang, deputy manager at Huawei France, announced their “ultramodern” plant in Brumath will serve customers across Europe. Construction is already underway. It aims for an annual output of 1 billion euros worth of goods and creating 500 long-term jobs.
Has France changed its tune for Huawei?
In 2020, France slammed the brakes on Huawei’s 5G rollout. It barred the operators from renewing equipment licenses. The move effectively sidelined the Chinese tech giant from its mobile networks. However, a recent meeting in Beijing changed the tune. Following talks with French Economy Minister Bruno Le Maire, China’s Vice Premier He Lifeng announced a surprising reversal: France to extend Huawei’s 5G licenses in certain cities.
Furthermore, Huawei France’s deputy manager confirmed collaboration with Agence Nationale de la Sécurité des Systèmes d’Information cyber security agency to establish trust. Notably, China is France’s third largest trade partner after the European Union and the United States.