HP Plans PC-Making Plant in China
HP and
China’s Chongqing Municipality have decided to create an advanced
manufacturing complex. The memorandum of understanding (MoU) states that
HP will operate a 20,000-square-meter facility in Chongqing, where it will
make notebook and desktop PCs for customers in the world’s most populous
country. Manufacturing operations are expected to begin in 2010.
When in
full operation, the HP-managed plant is expected to have the capacity to
meet market demand in Chongqing as well as other parts of China across
government, public, and retail sectors.
“Our
vision of transforming Chongqing into China’s West IT center requires
strong participation from the world’s most innovative and respected
companies,” said Wang Hongju, mayor, Chongqing Municipality. “We welcome
and support the HP venture, which will accelerate the development and
bring new economic opportunity to an area previously untapped.”
Chongqing
is one of the fastest growing cities in China. HP quotes National Bureau
of Statistics to say that in 2007, its GDP was $410 billion (RMB) with a
growth rate of 15.6% over the prior year.
The city
has 500,000 university students and more than 1,000 research and
development institutions. In addition to the educated work force,
development conditions offered by the local government made the
development attractive to HP.
Today’s
news follows a joint announcement related to an HP Global Call Center to
provide sales-related support for HP products and services and the
development of an information-sharing platform for Chongqing’s University
Town that will help reduce redundant IT investments by tertiary
institutions.
While HP
also has manufacturing operations in Shanghai, it’s doing business in more
than 680 cities in China.
