Nokia to Set Up 3G Networks R&D Center in China
(November 22, 2001) HELSINKI (Reuters) - Nokia (news - web sites) said on Thursday
it was establishing a research and development center for high-speed third-generation
(3G) networks in China, boosting its position in the world's biggest mobile phone
market.
``With this new R&D center, China will strengthen its position as part
of Nokia's global R&D network,'' Nokia Networks executive Sauli Salo said
in a statement.
China is Nokia's second biggest market after the United States.
Nokia and the Zhejiang provincial government signed a memorandum of understanding
on Thursday to set up the new R&D center in Hangzhou, the provincial capital,
the company said in a statement.
The center, Nokia's second R&D site in China, would employ up to 500 people
in three to five years' time and focus on developing software and technologies
related to 3G networks.
The center will open early next year and Nokia will also seek a local partner
for the site in 2003, it said.
Nokia is the world's largest manufacturer of mobile phones and a significant
player in supplying mobile network equipment, particularly for the GSM and 3G
systems.
Nokia, like rivals Ericsson (news - web sites) -- the world's largest manufacture
of mobile networks -- and Motorola, are increasingly focusing on China because
of its huge growth potential in telecommunications.
China has a world-leading 136 million mobile users, and is adding five million
a month.
Nokia said it has invested more than $1.7 billion in China. It has eight joint
ventures and over 5,500 employees there.
Earlier Nokia announced it had sold 30 percent of its Suzhou mobile networks
plant in China to an investment arm of the Shanghai city government.
Nokia shares traded 4.3 percent higher at 27.50 euros ($24.17) at 1230 GMT,
having doubled in value since the September 11 attacks on the United States.
Nokia slightly outperformed the Dow Jones European Technology Index.
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