Huawei looks to sell parts of business

1 Feb 2005

Chinese equipment maker Huawei Technologies has hinted that it may sell some of its business units to foreign buyers as part of a wide scale strategic review of its operations. The company said it is most likely to sell its optical and access divisions, which are less profitable than some of its other units, to concentrate primarily on the telecoms equipment market. As part of the restructuring programme, Huawei yesterday formed a distribution alliance with fellow equipment maker Marconi Corp of the UK. Under the terms of the contract, each company will gain new access to the others’ markets, and will distribute each other’s products. Huawei has also recently struck a similar agreement with Germany’s Siemens.