Motorola to Close Chinese Handset Factory

A Motorola joint venture in China, Hangzhou Motorola Cellular Equipment is to cease production of mobile phones next month reports the official China Daily news agency, with production moving to another plant in the country.

"The cell phone sector will be integrated into production lines in Tianjin Motorola after the first quarter of this year," said Chen Lei, spokesperson, Motorola China, adding that "Hangzhou Motorola will instead focus on TV set-top-box business as well as broadband and mobile network equipment,"

"The integration of the cell phone production also helps Motorola to lower its costs as the handset industry is better off in Tianjin than Hangzhou," said Zhang Ying, vice-president, Analysys International, a leading advisor for technology, media and telecom industries in China.

At the end of 2007 - the most recent figures we have - Motorola's ISC Hangzhou Site, a joint venture established in 1996 has approximately 5,000 employees working at two manufacturing plants-- Hangzhou Motorola Cellular Equipment and Hangzhou Eastcom Cellular Phone.

On the web: China Daily

Posted to the site on 6th March 2009