Cisco to Invest $545 Million in Brazil

US-based Cisco Systems, the world's largest maker of networking equipment, said it planned to invest 1 billion reais (about $545 million) in Brazil over the next four years.

The money will be used to build a technology center in Rio de Janeiro, expand manufacturing capacity in Brazil and other projects, Cisco Brasil chief Rodrigo Abreu said.

The innovation and technology center will be constructed near the port in Rio de Janeiro, with completion of the project expected by the end of this year.

The center will focus on developing information technology products and solutions for the sports, entertainment, security and oil industries, Cisco said.

The company is preparing for business it expects to be generated in Brazil by the 2014 World Cup and the 2016 Olympic Games in Rio de Janeiro.

Cisco plans to create a fund to spur the development of new Brazilian tech companies.

The networking giant expects to pump up to 50 million reais (about $27 million) into the fund, which will accept contributions from Brazilian partners.

Cisco's investment plan calls, moreover, for creation of a project to form partnerships with Brazilian firms covering intellectual property in the IT area.