ZTE to install mobile handset factory in H2

Chinese telecommunications company ZTE expects to install a factory in Venezuela in the second half of 2007 to start producing mobile telephones, local press reported.

Although the company has not yet confirmed the location of the facility the report stated that among the possible sites are the towns of Barquisimeto, Porlamar and Paraguana.

ZTE expects to manufacture 1mn mobile phones at the new facility by the end of 2008, ZTE Venezuela's VP C sar Escobar was quoted as saying.

The company has already invested US$10mn in Venezuela in the last six years and the latest project is designed to boost ZTE's share in the local mobile handset market, the report quoted Escobar as saying.

In the first five months of 2007, ZTE sold 1mn mobile devices in Venezuela, as many as it did in the whole of 2006.

ZTE has 150 employees in the country and expects to add 250 new staff members by the end of the year.

This project is part of an agreement reached during Venezuelan President Hugo Ch vez's visit to China in August 2006.

ZTE has also been working with state electricity firm Cadafe since 2005 installing 7,000km of fiber optic cables for voice and data transmission.

Another Chinese equipment manufacturer Huawei said last month that in conjunction with Venezuelan state-owned telco CVG Telecom it plans to build a factory to start producing GSM handsets locally. Production is slated to begin 2008.