Hewlett Packard Co, the largest U.S. technology company by revenue, agreed to build a printer factory in the southwestern Chinese city of Chongqing, China Daily reported.

HP has no plans to reduce its workforce in China after the firm said last month it will merge its printer and PC businesses, its largest divisions, to jumpstart growth, Chief Executive Officer Meg Whitman told the state-owned newspaper in an interview.

While HP still leads the global market in PC sales, growth in that division has been dwindling as mobile usage takes off.

The company, which has also seen its share in the China market decline, will place greater emphasis on winning back a large percentage by investing in PCs and printers and rebuilding its brand, Whitman was quoted as saying.

(Reporting by Kazunori Takada; Editing by Ryan Woo)

Meg Whitman HP China