Is Lenovo going to build more plants? Yes – and no, media reports
Lenovo eyes new plants?
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Local Tech Wire
MORRISVILLE, N.C. – Is Lenovo, the world’s No. 4 PC maker, going to build new manufacturing plants in Russia and India or not?
Yes, said Chief Financial Officer Huang Weiming, in an interview published Monday in the South China Morning Post.
No, said Lenovo spokesperson Angela Lee. According to a Dow Jones news service story, Lee said Wong was misquoted.
Lenovo, which is based in Morrisville but has most of its operations in China, is looking to expand growth in emerging markets, Lee said.
"The plan is part of our ‘three-pronged’ strategy," Huang was quoted as saying by the Post, "We expect the developed countries' markets to rebound as soon as possible. Meanwhile, we will expand our business in emerging markets so as to increase market share in China's mainland."
Lenovo does 48 percent of its business in China, 38 percent in developed countries such as the U.S. and 14 percent in emerging markets.
In April Lenovo canceled plans for a production plant in Poland.
Last week, in a bid to expand consumer sales, Lenovo announced a series of new products geared for home theaters. In addition to small, inexpensive desktop machine called a “nettop,” Lenovo also rolled out a home server.
Lenovo reported a $16 million loss for the quarter ending June 30, a sharp decline from a $264 million loss the previous quarter. Recent losses set in motion a series of management changes, including former chairman Yang Yuanqing taking over as chief executive officer in Feburary.
In a conference call discussing the second quarter financials, Yang said emerging markets would be the company’s “priority” because of growth potential.
Copyright 2010 Local Tech Wire. All rights reserved.
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