The Chinese telecommunications giant, Huawei Technologies, on Thursday opened a new distribution center for its Latin American operations in Colon free trade zone in northern Panama.

Panamanian President Juan Carlos Varela, Minister of Commerce and Industry Meliton Arrocha, as well as national director of telecommunications Edwin Castillo attended the opening ceremony.

Arrocha praised Huawei's decision, which contributed to the promotion of Panama's competitive business environment and political stability.

He explained that Huawei has a current staff of 500 people in Panama, with another 200 direct jobs and hundreds more indirect jobs to be created at the 10,000 square meter distribution center.

"It is projected that this new structure will house up to 15 production lines for Huawei products destined for all of Latin America," the minister said.

Wang Weihua, office representative of Commercial Development of China in Panama, said the opening of the new distribution center in Panama shows Huawei's confidence in Colon.

The center will be a logistic cooperation model between China and Panama, and the company's products will be distributed to 35 countries from this center, he added.

Huawei's first regional headquarters for Central America and the Caribbean in Panama was set up in 2011.