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Lenovo plans first Europe factory
[ 2007-11-28 11:33 ]

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Computer maker Lenovo Group will set up a plant in Poland, its fifth new facility this year, as the Beijing-based firm tries to grow its business in Europe.

Lenovo said yesterday it would invest $20 million to build a factory in the Legnica Special Economic Zone in Poland, which would employ 1,000 people.

It is their first new facility in Europe.

"Our new plant in Poland is an example of Lenovo's world-sourcing strategy in action," said Gerry Smith, senior vice-president of Lenovo's global supply chain.

"World-sourcing strategy" refers to utilizing resources at the most suitable place and in the most appropriate way.

This year, Lenovo has announced four new facilities in Shanghai, Baddi of India, Monterrey of Mexico, and North Carolina.

The Polish factory will assemble, distribute and ship Lenovo computers for customers in Europe, the Middle East and Africa, where Lenovo's business grew by 18 percent year-on-year in the previous quarter to $886 million - 20 percent of its total.

The facility will manufacture 2 million computers when it is completed in the third quarter of next year.

The company has almost 36 percent of the market share in China and about 8 percent worldwide, wrestling against Acer for third position behind HP and Dell.

Yang Yuanqing, chairman of Lenovo, said in an earlier interview with China Daily that the integration with IBM's PC unit, which the Chinese firm bought in 2005, was complete and the goal for the next phase is to get quality growth - especially in the regions outside China and in the consumer computer market.

Europe is a key strategic market, and battleground, for Acer and Lenovo.

Questions:

1.  In which European country will Lenovo set up a new facility?

2.  How many other new facilities were announced by Lenovo this year?

3.  In which year did Lenovo buy IBM’s PC unit?

Answers:

1. Poland.

2. Four.

3. 2005.

(英語點津 Annabel 編輯)

About the broadcaster:

Brendan is an Australian who has been involved in education and writing for over a decade. He has been published most recently for the Tiger Airways Inflight magazine, The Bangkok Post, The Taipei Times and Japan's Hiroshima Outside Magazine. He holds a Masters Degree in Community Development and Management and has resided in China for over 3 years.

 

 
 
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