The Chinese telco major Huawei said on Wednesday said that it has started production of components of network equipments at both of its facilities in Chennai.  It also said that as part of its focus on developing local industry it is planning to invest more in the country.

In a statement on Wednesday the company also denied that the reports appeared in a section of media that it wants to cancel its plan to set up a new factory in India due to weakening demand in the country.

"Both the manufacturing facilities in Chennai will cater to the growing demand of telecom network equipment supplied by Huawei India to Indian telecom service providers in the domain of 2G expansion, 3G and LTE networks," the company said.