Menu
HP to manage PC manufacturing plant in China

HP to manage PC manufacturing plant in China

HP will manage and operate a computer factory to be built in China.

Hewlett-Packard will manage a computer factory in Chongqing, China, part of a strategy to strengthen its operations in the country's less affluent Western region.

The 20,000-square-meter plant will enter operation in 2010 and be used to produce desktop and laptop PCs, as part of an agreement struck between HP and the Chongqing municipal government. HP did not disclose what the production capacity of the plant will be, but said it will have the capacity to meet market demand in Chongqing as well as other parts of China."

HP did not detail the amount of investment or who will provide the funds required to build the factory, only describing it as an "HP-managed plant."

Chongqing, a city that is administered by China's central government, lies next to Sichuan province in southwestern China. The city, including surrounding areas, had a population of 28 million in 2006, according to official figures.

Much of the growth now taking place in China is happening away from the country's relatively affluent coastal areas. The country's interior and smaller cities and towns are growing at a much faster rate, albeit from a smaller user base, and PC makers are competing for buyers in these markets.

Nevertheless, PC vendors rarely build their own plants these days, as most production capacity is provided by contract manufacturers that have more experience in manufacturing and managing the complex web of suppliers required to build computers. This strategy, upon which HP relies heavily, means the company can keep inventory expenses low and enjoy lower production costs that contract builders achieve through experience and economies of scale.

In the case of the Chongqing factory, government backing appears to play a crucial role. HP cited Chongqing's work force and "development conditions offered by the local government" as factors behind its plans to operate the plant, it said in a statement.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

HP channel recognised at 2017 Partner Awards

HP channel recognised at 2017 Partner Awards

The HP Partner Awards 2017 at Shed 10 kicked off with an AMD-sponsored hackers lounge, a mysterious gaming style area filled with dry ice and red lasers, the waiters wearing Mr Robot style masks.

HP channel recognised at 2017 Partner Awards
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments