Chinese telecommunications business Huawei has increased its investment in UK companies through the acquisition of CIP Technologies.

Chinese telecommunications business Huawei has increased its investment in UK companies through the acquisition of CIP Technologies.

The move is part of Huawei’s strategy to bolster its UK research and development capabilities through the launch of a UK research centre.

Ipswich-based CIP Technologies is being purchased from the East of England Development Agency (EEDA), for an undisclosed amount, and is said by Huawei to ‘significantly deepen’ its optical research and development capabilities. EEDA is the Regional Development Agency covering the East of England.

Will Pope, chairman of EEDA, comments: ‘This is a tremendous investment success story for EEDA, which acquired CIP in 2003 from its then American owners to save it from closure.

‘EEDA’s mission was to ensure that a key UK technology company was not lost from the hi tech business base of the East of England.’

Huawei’s investment into the UK has been ongoing for ten years, and in 2011 the telecoms company announced plans to double its UK workforce to 1,000 in addition to opening a European design centre for its mobile device business as well as an internal audit centre.

Peter Wharton, chief executive officer of CIP, says: ‘We had a good level of interest form potential acquirers, but the management team and staff overwhelmingly backed EEDA’s view of the Huawei bid because we believe its research and development capabilities and investment in CIP will lead us to have many more significant achievements in the future.

‘The last six months of working closely with Huawei has more than met our expectations, building the foundations for an excellent working relationship.’