Elcoteq enters India

Elcoteq will establish operations in Bangalore, the new technology and IT center in India. Initially, the company will operate in rented manufacturing space. The plant is expected to be operational within six to nine months. When fully operational, the plant is estimated to employ approximately 1,000 people. The start of business operations in India reinforces the importance of the Asia-Pacific area to Elcoteq and its commitment to development of the telecom manufacturing industry in the region. "We are very proud to be the first global EMS company in the communications technology sector offering electronics manufacturing services in the country. India is one of the fastest growing markets for mobile telecommunications, and we see great opportunities for manufacturing services in the area. We believe that our track record and competence in communications technology give us clear competitive advantages over our competitors," said Mr. Hannu Keinänen, President of Elcoteq Asia-Pacific. India, with a population of over one billion people, is one of the most interesting and fastest growing areas for both handset OEMs and EMS providers. The key drivers underlying Elcoteq's decision to enter India are the large domestic market for mobile communications and its growth prospects coupled with other important factors such as the availability of a highly educated labor force, an attractive customer base and favorable cost levels. "Elcoteq's entry is a great beginning from the Bangalore hardware industry perspective. As the first multinational corporation, Elcoteq will act as an anchor for many other multinational corporations to follow in the hardware manufacturing industry. The Indian Government welcomes Elcoteq's plans to establish manufacturing operations in India," said Mr. B. V. Naidu, Director Software Technology Parks of India.