Vulnerabilities / Threats
7/26/2010
11:35 AM
50%
50%

ZTE $1.5 Billion Development Hits Snags

The contract manufacturer is addressing concerns about its planned manufacturing, research, and training base in southern China.

After a banner year last year in which profit surged 48%, ZTE announced earlier this month that it will build a manufacturing, research, and training base in southern China. But there are some snags the company will have to address before the plan can get off the ground.

The telecommunications equipment and network solutions provider said in a statement earlier this month that it plans to build a manufacturing and research base in the Heyuan Hi-Tech Development Zone in Guangdong province's Heyuan. It is projected to be completed in six years at a cost of $1.47 billion.

Before the plan gains approval from shareholders, however, it will need to address a number of potential pitfalls. "The risks present with this investment have to do with politics and construction," a staff member of the board of directors' secretary office said.

When asked to elaborate, the staffer said that ZTE is engaged in talks with the Heyuan City government, which has already agreed to perks but has not elaborated fully on what these will be. As for construction, the cost estimate is based on expected price rises in the construction industry that are subject to change. But he brushed off these concerns as normal investment risks.

There are also worries about whether ZTE will be able to make back the outlay needed for the project. But, the staffer said, "this base will include manufacturing and research. Since there are products being manufactured, there definitely will be a return."

Analysts say that choosing Heyuan as the site of the base will benefit both ZTE and the locality. A lot of ZTE's investments are currently in Shenzhen, but Heyuan will offer lower property costs and worker salaries. Heyuan is also already well known as a cell phone manufacturing base.

ZTE's profit last year jumped 48% to $361 million on sales of around $8.89 billion, an increase of 36%.

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-8921
Published: 2015-03-01
The IBM Notes Traveler Companion application 1.0 and 1.1 before 201411010515 for Window Phone, as distributed in IBM Notes Traveler 9.0.1, does not properly restrict the number of executions of the automatic configuration option, which makes it easier for remote attackers to capture credentials by c...

CVE-2014-9676
Published: 2015-02-27
The seg_write_packet function in libavformat/segment.c in ffmpeg 2.1.4 and earlier does not free the correct memory location, which allows remote attackers to cause a denial of service ("invalid memory handler") and possibly execute arbitrary code via a crafted video that triggers a use after free.

CVE-2014-9682
Published: 2015-02-27
The dns-sync module before 0.1.1 for node.js allows context-dependent attackers to execute arbitrary commands via shell metacharacters in the first argument to the resolve API function.

CVE-2015-0655
Published: 2015-02-27
Cross-site scripting (XSS) vulnerability in Unified Web Interaction Manager in Cisco Unified Web and E-Mail Interaction Manager allows remote attackers to inject arbitrary web script or HTML via vectors related to a POST request, aka Bug ID CSCus74184.

CVE-2015-0884
Published: 2015-02-27
Unquoted Windows search path vulnerability in Toshiba Bluetooth Stack for Windows before 9.10.32(T) and Service Station before 2.2.14 allows local users to gain privileges via a Trojan horse application with a name composed of an initial substring of a path that contains a space character.

Dark Reading Radio
Archived Dark Reading Radio
How can security professionals better engage with their peers, both in person and online? In this Dark Reading Radio show, we will talk to leaders at some of the security industry’s professional organizations about how security pros can get more involved – with their colleagues in the same industry, with their peers in other industries, and with the IT security community as a whole.