HMD Global, the manufacturer behind Nokia-branded phones, has achieved a significant milestone by becoming the first major smartphone company to produce devices in Europe. The company’s newly launched 5G model, the Nokia XR21, made in Hungary, is now available for purchase, targeting security-conscious customers.

HMD Global’s co-founder, chairman, and CEO, Jean-Francois Baril, expressed excitement about this development, stating, “We are thrilled to be manufacturing the Nokia XR21, our signature rugged 5G smartphone, in Europe.”

This move marks a significant shift in the smartphone manufacturing landscape in Europe, which has historically seen major companies like Apple and Samsung producing their devices in Asia to reduce costs.

Notably, many of Apple’s iPhones are manufactured in China, a crucial market for the tech giant. However, concerns regarding national security have surfaced in recent years, leading to technology sanctions on Huawei’s mobile business by the U.S. and restrictions on the use of iPhones by Chinese state employees.

Baril emphasized HMD Global’s commitment to security, technology, and manufacturing processes designed to enhance the durability and security of their devices. The Nokia XR21, initially tailored for enterprise customers, features enhanced security measures, addressing the specific needs of corporate clients in collaboration with IT security partners.

HMD Global has been storing data in the European Union since 2019, with all consumer and corporate data from its smartphones hosted and processed on servers located in Finland.

In 2016, HMD Global secured an exclusive 10-year licensing agreement with Nokia Oyj, a former leader in the phone manufacturing industry. This agreement allowed HMD Global to produce Nokia-branded smartphones and tablets.

The decision to commence manufacturing within the European Union aligns with the region’s efforts to encourage companies to establish production facilities in strategic sectors such as semiconductors.

The Nokia XR21 European edition is priced starting from 649 euros or 549 pounds, with a limited edition of 30 units crafted from the European production line in frosted platinum, available for purchase on the company’s website from 699 euros or 599 pounds.