Telecom Lead U.K: Chinese telecom equipment major Huawei on Tuesday confirmed its USD 2 billion investment and procurement plans for the U.K.
Ren Zhengfei, founder and CEO of Huawei, in a meeting with Prime Minister David Cameron and Lord Green, Minister of State for Business, outlined the company’s commitment to the country through research and development, local procurement and center of excellence initiatives.
Huawei will invest USD1 billion (GBP650 million) and plans to spend another USD1 billion (GBP650 million) in procurement in the U.K over the next five years.
The investment will boost the Chinese equipment maker’s competitive position in the Europe by helping it build the U.K as its base. This major investment will create an additional 700 jobs in the U.K for the company. Huawei currently employs over 800 people in the country.
“The investment announced by Huawei today demonstrates once again that the U.K is open for business. I welcome this and I want to see more companies invest in the U.K as we work to achieve sustainable and balanced growth within our economy,” Cameron said.
“The British Government values the important relationship with China, both countries have much to offer each other and the business environment we are creating in the U.K allows us to maximize this potential,” Cameron said.
The relationship with U.K is especially important for Huawei in the current scenario when it is facing serious allegations from the region as well as the international leaders like the U.S and Australia. Chinese equipment vendors Huawei and ZTE have been under scanner due to security concerns raised by these countries over their networks.
As a response to this Huawei has now recruited the U.K’s former IT chief, John Suffolk, as a cyber-security official. Additionally Brian McBride, a former managing director of Amazon.co.u.k and T-Mobile’s U.K operation; and Claudia Arney, a former director of Emap, have been appointed to Huawei’s advisory board.
Zhengfei said, “The U.K is one of the most important European markets in which Huawei has invested. Over the past eleven years we have found its Government to be transparent, efficient and practical. The U.K is an open market, which welcomes overseas investment, I am therefore very pleased today, to be announcing the USD2 billion investment and procurement plan, promoting the development of openness and free trade.”