Alcatel has established its Asia-Pacific Headquarters in Shanghai, as the company expects the region become its third-largest business generator after Europe and the United States.

Chairman and CEO Serge Tchuruk of Alcatel said recently in Shanghai that this move will cater to the needs of customers more effectively in that the majority of its 5,000 workers in China are in Shanghai.

In addition, he said, China is a major force behind the rapid growth of the telecommunications equipment and service supplier's industry in the Asia-Pacific region.

Last year, Alcatel had a revenue of 2.5 billion US dollars, and this is expected to rise by 40 percent in the next three to five years, he said.

He said that following the establishment of regional headquarters in Shanghai, Alcatel will increase its research and development personnel from the current 1,000 to 2,000 in order to develop global products and solutions. In the past, Alcatel's production and research and development efforts have mainly concentrated on making products specifically for the Chinese market.

Since its entry into China in 1983, Alcatel has invested over 420 million US dollars in its 17 joint ventures and four solely funded companies.