Huawei to Open Research Center in Finland



PARIS — Huawei, a Chinese maker of telecommunications equipment, said Monday that it planned to open a research and development center in Helsinki next year, accelerating the company’s investments in Europe, where its business is expanding rapidly.


The move emphasizes a trans-Atlantic difference in attitudes toward Huawei, a company that has been largely shut out of the U.S. market for network gear because of congressional concerns about possible security threats — fears that the company insists are unfounded.


While Huawei has faced difficulties in some European markets, like France, it has done better elsewhere. Huawei employs more than 7,000 people in the region, and it says that total could double within the next three to five years. Huawei already has a research center in Italy and is studying the possibility of opening one in Spain. It also recently announced a $2 billion investment in Britain.


The planned center in Helsinki, involving an investment of €70 million, or about $90 million, will work on smartphone development, including things like user interfaces and power management, the company said. When the center opens next year, it will employ 30 people, but this number could grow to 100 over the next five years, the company said.


The announcement is a shot in the arm for the Finnish technology sector, which has been suffering from the woes at Nokia. The company, once the biggest mobile phone manufacturer in the world, has suffered a precipitous fall in market share in recent years.


Although Huawei has been known mostly for its network equipment, the company is pushing to make a name for itself with its handsets. Mobile devices accounted for 22 percent of its revenue last year, growing 37 percent. That compares with growth of 12 percent for the overall business.


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