Finnish technology firm to set up facility in B'lore

Friday, 04 June 2004, 19:30 IST
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BANGALORE: Elcoteq Network, a Finland-based electronics services provider to the communications industry, has decided to set up a facility here to offer solutions in the field of telecom infrastructure and mobile handset manufacturing. In a statement filed with the Helsinki stock exchange, where the company is listed, Elcoteq said the technology development centre will become operational in the next six to nine months. The company, the first global electronics manufacturing services (EMS) firm in India to offer its services to original equipment manufacturers of mobile phones and telecom equipment, will hire about 1,000 people for the proposed centre. The European firm, however, did not disclose the investment earmarked for setting up the Indian facility. Hannu Keinanen, president (Asia Pacific) of Elcoteq Network Corp, said the business operation in India would reinforce the importance of the Asia-Pacific region to the company and develop the telecom manufacturing industry in the region. "India is one of the fastest growing markets for mobile communications and we see bright opportunities for manufacturing services in the sub-continent," he said in a statement. "We believe our track record and competence in communications technology give us distinct advantage over our competitors." With a population of over one billion, India is fast emerging as a focus area for handset original equipment manufacturers and EMS providers. Experts say the key drivers underlying Elcoteq's decision to enter India are the huge domestic market for mobile communications and its growth prospects. Availability of highly skilled labour force, attractive customer base and favourable cost levels are the other factors that have influenced Elcoteq's decision to locate the centre in India. "Elcoteq's entry will be a good beginning from the Bangalore hardware industry perspective," said B.V. Naidu, director of Software Technology Parks of India. "As the first domain player, the company will act as an anchor for other multinational firms to follow in the hardware sector," he added. Elcoteq provides end-to-end solutions consisting of design, manufacturing, supply chain management and after-sales services for the whole lifecycle of its customers' products. The company operates across three continents in 11 countries and has about 12,600 employees.
Source: IANS