Nokia to establish second R&D center in China

Mobile phone giant Nokia Corp. will build and run a research and development (R&D) center in China, its second in the country. The center is expected to be opened in 2002 and employ up to 500 people in three to four years, the Finnish company announced Thursday.

Nokia signed a Memorandum of Understanding with the Zhejiang Provincial Government of China for the center, which is to be located in Hangzhou, the capital city of Zhejiang province, the company said in a statement.

The R&D center will focus on software development as well as the development of platform technologies for 3G (third generation) mobile networks, Nokia said. The company picked Hangzhou as the location due to its proximity to Zhejiang University, the largest institution of higher learning in China, according to Nokia.

Nokia also hopes to run the R&D center with a local partner by 2003, with that partner employing most of the workers in the center, the company said.

China is Nokia's second largest market behind Europe and it already has over 20 offices, eight joint ventures and now two R&D centers there. So far it has invested US$1.7 billion in the country, the company said.

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