Telecom Lead U.K: Chinese telecom equipment major Huawei is planning to launch £1.2 billion investment in the UK, The Telegraph reported.
The investment is likely to produce approximately 700 jobs. It will be spread over five years and represents £600m direct investment along with £600m generated through the supply chain.
With this investment Huawei is planning to establish a base in Europe to lead research and development work, according to the report.
Huawei’s expansion plans recently faced severe setbacks from the U.S and Australia following allegations over cyber security. As a response to this, the company has now recruited the UK’s former IT chief, John Suffolk, as a cyber-security official.
Additionally Brian McBride, a former managing director of Amazon.co.uk and T-Mobile’s UK operation; and Claudia Arney, a former director of Emap, have been appointed to Huawei’s advisory board.
Recently Huawei and ZTE also faced set back in the Europe when the European Union started a major trade case against these telecom equipment makers, arguing that they have benefited from illegal government subsidies.
The union alleged that these companies have obtained illegal government subsidies and sold products in the EU below cost. The union has also told member states that it had been gathering evidence for an anti-dumping case against Huawei Technologies Co Ltd and ZTE Corp.
The Chinese majors are badly trying to boost their morale in global markets. With this new investment Huawei hopes to not only recover the industry reputation but also offer stiff competition to leading European vendors.