Chinese-owned Huawei Technologies Hungary European Supply Centre opened a unit in Cserkut, near Pecs (SW Hungary), on Tuesday.

Chinese ambassador to Hungary Gao Jian said Huawei’s presence in Pecs and Cserkut was an important part of the economic cooperation between Hungary and China.

Pecs mayor Zsolt Pava said Huawei viewed the city as a partner, staying there even after its supplier Elcoteq went bankrupt and ensuring the continuation of production.

Contract electronics manufacturer Flextronics started assembling optical transmission units as well as network communications products in Cserkut from the end of 2011.

Gavin Dai, who heads Huawei’s Hungarian subsidiary, said output of optical transmission units and network telecommunications products in Cserkut would rise from a monthly 2,000 next month to 5,000 by year-end. Flextronics will raise headcount from 100 to 300 to fill the order, worth several hundred million dollars, he added.

Including people who work to fill other orders, headcount at Flextronics’ plant could reach 800 by year-end.

Andreas Kalborg, deputy chief of Huawei Technologies Supply Network, said the company picked Hungary for the centre because of its professional workforce, the support of government officials at the national and local level, and its good logistics infrastructure.

Huawei said earlier that revenue from production in Hungary is set to reach USD 1.2bn in 2012, double the amount in 2011. Next year, turnover is expected to reach USD 3bn. The number of jobs the company has created in the country, directly and indirectly, is seen rising from 1,000 to 3,000.

Huawei has production centres in Komarom (NW Hungary) and Pecs.