China's ZTE works to double its investments in Turkey

By Tuba Sahin

ANKARA (AA) - Chinese telecommunication giant ZTE is working on doubling its investments in Turkey, the company’s senior official said on Thursday.

"Turkey drives Information and Communication Technology network innovations. It’s a good market for technology companies," Jane Chen, Senior Vice President of ZTE, told Anadolu Agency.

Turkey's geographical location, its dynamic economy and its young population are important factors for ZTE's investment decision, she said.

On Wednesday, ZTE agreed to invest more in Turkish telecoms company Netas after it acquired the company’s 48.04 percent shares for $101.3 million on Dec. 5, 2016, as part of its goal of expanding its operations across key markets covered by Beijing’s "One Belt, One Road" initiative.

According to the new deal, the Chinese company will open three new centers in Turkey including a center of excellence for its GSM-R development, center of maintenance, repair, and support for the Europe, the Middle East and Africa (EMEA) region and a training center called ZTE Netas Academy for the EMEA region.

Netas, which is celebrating its 50th anniversary this year, is a major manufacturer and supplier of telecommunications equipment and systems integration services to enterprises and telecommunications network operators in Turkey and the Middle East. The Turkish Armed Forces Foundation holds 15 percent stake in the public listed company.

Citing that one of their subsidiary Netas is well experienced and dominates the market in Turkey, Jane Chen said that ZTE would integrate its IT solutions to Netas's customer services to strengthen their businesses.

Jane Chen also said her company ZTE aims to double its portfolio globally in the next two years.

"The company's more investments in Turkey and overseas depends on customers need, market structures and targets of its subsidiaries," she said.

ZTE aims to be a global leader in the field of 5G technology innovations, Chen emphasized.

"Around this strategy we definitely need to invest in many areas and we need to continue to put more than 10 percent of our revenue to our R&D department," she said.

ZTE, which is listed on two stock exchanges, provides services to 160 countries and region with more than 80,000 employees and more than 20 R&D centers.