Huawei Starts Relocation of 2,700 Employees From Shenzhen to Dongguan
Liao Shumin
DATE:  Jul 02 2018
/ SOURCE:  Yicai
Huawei Starts Relocation of 2,700 Employees From Shenzhen to Dongguan Huawei Starts Relocation of 2,700 Employees From Shenzhen to Dongguan

(Yicai Global) July 2 -- Huawei Technologies, the world's biggest producer of telecoms equipment, has officially started the relocation of its research and development unit, along with other departments to the city of Dongguan in southern Guangdong province from nearby Shenzhen.

The firm used 40 trucks to undertake 60 journeys between the two cities and an estimated 2,700 employees will start work in new offices today, National Business Daily reported a source at the company as saying.

The new facility in Dongguan's Songshanhu district is one hour's drive from the Shenzhen headquarters, and a daily shuttle bus will serve the route.

The firm decided to relocate in response to soaring R&D expenses and urban real estate and labor costs. The move may also be part of Huawei's strategy to scale up business operations, a source said. "Huawei is relocating R&D which does not generate any revenues, and profitable production units will be integrated into the headquarters in the future."

Reports earlier this year suggested that Huawei could provide some 30,000 apartments for employees in Dongguan, all priced at CNY8,500 (USD1,283) per square meter irrespective of building, floor and apartment design differences. Apartments will be distributed using a points-based system based on work seniority, length of service in Dongguan, annual work performance and internal honorary titles.

The company has not responded to requests for comments on the rumors. However, an employee told National Business Daily, "The rumors are mostly true, but only employees based in Songshanhu are eligible to buy the apartments, and the properties cannot be traded as ordinary commercial properties in the five years after purchase. If an employee works for Huawei for less than five years, he or she would need to return the apartment to the company when leaving."

Despite the relocation of some functions to Dongguan, Huawei President Ren Zhengfei said adamantly at a conference in the first half of last year that his firm would never uproot its headquarters from Shenzhen.

Editor: William Clegg

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Keywords:   HUAWEI,R&D Department,Shenzhen,Dongguan,Relocation