Motorola ploughs $90m into China

Communications equipment maker Motorola said it will invest $90m to set up a new research company in Beijing, SARS or no SARS.

Despite US travel advisories cautioning against visits to countries such as China that have been hit by the severe acute respiratory syndrome, Mike Zafirovski, Motorola president and chief operating officer, made a one-day stop in the mainland to announce the investment last Saturday.

On top of the initial $90m investment, the company said in a statement that its new research centre will also spend $500m on manpower and equipment over the next five years.

"My presence here demonstrates both Motorola's concern for its employees as well as our confidence in China's ability to fight the spread of SARS," said Zafirovski.

Motorola had closed its Beijing office at the end of April because an employee came down with the illness. The office is due to reopen this week.

Like many technology companies, Motorola sees China as an enticing locale in which to both build and sell products.

"China is an important market for Motorola worldwide as well as a manufacturing base and research centre for the company," Zafirovski added.