BenQ Earmarks US$35mn for Local R&D

Taiwanese handset manufacturer BenQ Mobile plans to invest 75mn reais (US$35.1mn) in research and development of new products at its Manaus plant in northern Brazil this year, reported local financial newspaper Valor Econômico.

BenQ Mobile, which has taken over production of handsets formerly made by Germany's Siemens (NYSE: SI), will launch 15-20 new jointly branded BenQ Siemens handsets before the middle of 2007, said Regina Macedo BenQ's marketing director.

The Taiwanese firm also plans to introduce new technology products to Brazil such as PCs, notebooks and projectors. In the area of handsets, BenQ can use the Siemens brand for five years.

BenQ will also invest 2.7mn reais to adapt the factory, formerly owned by Siemens, to meet its processes and requirements. Around 1,000 Siemen's employees will transfer to the new operation.

BenQ expects to post sales of 1.5bn reais in Brazil this year, with exports accounting for 20% to 25% of local production, Valor said.

The company's strategy in Brazil is to focus on sophisticated products, with the priority being GSM, although it has not ruled out producing CDMA handsets.

BNamericas.com"

Posted to the site on 15th March 2006