May. 2, 2012 (China Knowledge) - Huawei Technologies Co Ltd, China's No. 1 telecom equipment maker, plans to set up a logistics center in Hungary with an investment of around US$1.5 billion to provide logistics services to the Europe.

Lu Yong, vice president of Huawei, and Hungary Economy Minister Gyorgy Matolcsy, has signed a memorandum of understanding in Budapest, capital of Hungary. No more details about the logistics center have been disclosed.

Hungary, the center of Europe, boasts a developed logistics industry and service sector, said Justin Zhang, a Huawei public relations manager for Central and Eastern Europe.

Huawei aims to expand its storage area for logistics to around 25,000 square meters by the end of this year, bringing total export and import value to US$1.5 billion.

Since 2004 Huawei had entered the Hungarian communication market, the company has launched strategic cooperation relations with major operators, such as Magyar Telekom, Norway-based Telenor and Vodafone.

At present, Huawei has 37 representative offices, 6 R&D centers and 9 training centers in the Europe, with total staff of approximately 7,000, 65% of which are local natives.