The first smartphone made in Europe has been released by HMD Global, the manufacturer and marketer of Nokia cell phones.

The information was released about six months after the Finnish company initially disclosed it was shifting some of its manufacturing to Europe to satisfy a rising demand from businesses for locally made hardware to solve sustainability and security issues. HMD Global told TechCrunch in February that it was keeping the location under wraps because of security concerns, but the company hadn’t specified where it was manufacturing in Europe.

According to Lars Silberbauer, chief marketing officer of HMD Global, “Unfortunately, due to our customers being in various security-conscious industries, we’re not allowed to tell anyone which countries we are producing these devices in, simply to keep it as secure as possible.”

The business has now apparently changed its mind and acknowledged that at least one of its manufacturing facilities is in Hungary. The location of the production plant in Hungary is still a secret, a spokeswoman for the company informed TechCrunch, but they did clarify that more locations in Europe will get more manufacturing and assembly capacity.

The 5G Nokia XR21 is the first gadget out of the gate and is currently for sale to businesses. The new variant of the XR21, which was assembled in Europe, can provide enterprise customers with a “higher level of security assurance through customised software and security features,” according to a spokesperson for HMD Global, who also noted that they are collaborating with additional IT security partners. This is essentially the same device as the XR21 that was released earlier this year.

Additionally, for a suggested retail price of €699 (£599), the business is selling 30 limited edition models of these devices to the general public through the online Nokia shop for customers in the U.K., France, Germany, Austria, the Netherlands, Belgium, Spain, Italy, and Finland. It also intends to release a conventional (i.e., non-limited edition) version of the black European XR21 smartphone for consumers.

A quick recap: HMD Global was born out of Microsoft’s disastrous acquisition of Nokia smartphones ten years ago, a decision that led to a $7 billion “goodwill” write-down after Satya Nadella was elevated to the CEO position. Microsoft finally sold off its entire Nokia business, and in 2016 the newly founded HMD Global acquired the Nokia brand.

HMD Global has mainly concentrated on feature phones and low-cost smartphones in the intervening years, but the Nokia brand value has enabled the Helsinki company raise $330 million in capital from companies including Google, Qualcomm, and Nokia itself. Although it hasn’t provided any additional information, HMD Global recently acknowledged plans to market devices under its own brand in addition to those using the Nokia name.

Beyond what was already in the XR21, the new European gadget hasn’t altered much in terms of features, but it appears that its target market is focused on longevity and sustainability. The XR21 is said to have “military-grade durability” according to the manufacturer. It has an IP69K rating, which denotes that it is made for industrial use cases where there may be a significant danger of dust, heat, moisture, and impact.

It’s important to remember that the materials themselves will still need to be imported from other parts of the world, most notably China, from where the different metals and components will still be sourced before being shipped to HMD Global’s production and testing facilities in Europe for assembly, calibration, and testing.

The demands for security from the businesses HMD Global is pursuing are, in fact, one of the key reasons the company is moving manufacturing closer to home. For the same reason, the business moved its data centres to Europe in 2019, and part of this will involve designing and testing the phone locally from the start. The business claims:

It wouldn’t make a whole lot of sense to create all of its phones in Europe only to transport them back to Asia, which is still a big market for the corporation. Therefore, the news of today does not herald the beginning of a massive “lift and shift” from its present production capacity in China and India to Europe. HMD Global has made it quite obvious that this is all about meeting a very unique demand from a very specific group of customers, where sovereignty and localization are crucial.