Chinese telecom equipment maker Huawei Technologies and North Rhine-Westphalia's Minister President Juergen Ruettgers have signed a letter of intent in Shanghai to invest EUR20 million to set up an innovation center in Dusseldorf, capital of North Rhine-Westphalia, Germany.

The innovation center is expected to start construction in 2010. In addition, Huawei is planning to hire 200 local engineers and to implement scientific research cooperation with surrounding universities.

According to Huawei, the reason for locating its new innovation center in Dusseldorf is because the Germany branch of Vodafone, an important client of Huawei, is also in this city. Huawei reportedly relocated its European headquarters and its 400 employees from Britain to Dusseldorf in 2007.