Swedish company Ericsson is to open a new cable factory in Porirua, near Wellington.
The company says the factory will employ 30 workers and initially provide cabling for the Ultra Fast Broadband Network and Rural Broadband initiatives.
It says the $15 million plant also has the potential to export within the wider Asia Pacific region.
Ericsson spokesperson Magnus Kreuger says locating the plant in New Zealand will significantly reduce the company's delivery times and reduce the environmental impact of using shipping to import cabling.
Production is expected to get underway later this year.