14 DAY TRIAL // Lenovo is one of the most important computer systems manufacturer and vendor, sitting in Top 5 just behind more powerful names like HP and Dell. Like any other computer hardware manufacturing firm, Lenovo thinks about expanding its producing facilities in emerging and developing countries as a means to cut production costs and become more competitive. The chosen countries by Lenovo's executives are Mexico and India and one of the company's executives declared that his firm is "actively scouting locations" for more production facilities to be located in countries from Central and Eastern Europe, but until now no official statement has been released.
The two production plants in Mexico and India will cost Lenovo about $30 million and apart from hardware production they will be used for "distribution, customer support, configuration and other services", according to the Web based news site WRAL. Currently, India is known for a blooming hardware and software computer industry and this situation attracts many IT companies just like Lenovo, which plans a marketing consolidation move in Bangalore, India's Silicon Valley.
Lenovo's currently active production facilities are located in China and in India, at Pondicherry. According to analysis firms Gartner and IDC, Lenovo registered growing sales, increasing with 22 percent and reaching almost 5 million units this year, while at the same time, it owns about 8 percent of the PC world market. "These plants are an investment in Lenovo's future that leverages our world-class manufacturing base in China and extends it globally to satisfy demand for Lenovo products in vital economic opportunity areas," said Gerry Smith, director of Lenovo's supply chain operations.
The new production plant in Mexico will be built in Monterrey, while the Indian one will be built in Baddi (an important Indian pharmaceutical center) located in the northern state Himachal Pradesh. The new plants will have quite a production capacity, with the Indian one reaching 2 million units every year and the Mexico plant going for 5 million computers per year.