China's Kaifa to build Brazil factory for Vivo–Sabesp contract

Chinese metering equipment manufacturer Kaifa plans to invest 200 million reais (US$41.2 million) in a factory in Brazil’s Manaus free trade zone to supply smart meters for a contract signed by Telefônica Brasil (Vivo) with water utility Sabesp, considered the largest of its kind in the global sanitation sector.

If confirmed, the plant will be Kaifa’s first outside Asia.

The choice of Manaus is reportedly linked to tax benefits offered by the local industrial hub. Construction has not yet begun, but press reports indicate the project could generate around 300 direct and indirect jobs.

The 3.8 billion-real (US$783 million) contract won by Vivo in 2025 includes connectivity services and network upgrades for the installation of 4.4 million smart water meters by 2029. Kaifa will be the main supplier of this equipment.

The meters will use NB-IoT (narrowband – Internet of Things) mobile technology, provided by Vivo, and will be installed in homes and Sabesp properties, initially in São Paulo and São José dos Campos.

Privatized in July 2024, Sabesp is responsible for water supply, sewage collection and treatment in 377 municipalities in São Paulo state, serving 28 million people. It is the largest water company in Latin America and one of the largest globally.

Vivo said the deal aligns with its strategy to expand in the services and B2B segments.

Founded in 1985 and headquartered in Shenzhen, Shenzhen Kaifa Technology currently operates nine factories – seven in China and two in Malaysia – and employs 16,000 people.

In addition to meters, Kaifa manufactures semiconductors, sensors, data storage systems and industrial equipment for various sectors. Production in Manaus, therefore, could eventually evolve to include other items from the company’s portfolio.

Kaifa’s annual revenue is estimated at 14.83 billion yuan (US$2.1 billion).

(The original version of this content was written in Portuguese)