Huawei Technologies Co Ltd, a Chinese maker of telecommunications equipment, intends to invest US$800 million over the next three years in building another factory in the Brazilian state of São Paulo, Reuters reports.

The news agency quotes Governor João Doria of São Paulo as saying so after meeting Huawei executives on Friday during his visit to China.

Mr Doria said Huawei would build the factory in anticipation of demand that would follow the first auction in Brazil of radio spectrum for fifth-generation (5G) wireless telecommunication networks, which is due to be held next March.

The report quotes Huawei as saying: “Depending on the performance of the smartphone operation in the local market, Huawei will consider building a plant in São Paulo in the near future.”

The new factory will employ 1,000 people and sell its output in Brazil and abroad, the report says.

Huawei has been operating in Brazil for 21 years and already has one factory in the state of São Paulo, employing 2,000 people there, Reuters says.