Lenovo To Manufacture PCs In US; Operations To Commence In 2013

After snapping up Cloud Computing firm Stoneware, Lenovo is expanding its hardware operations as it plans to start PC manufacturing in North Carolina in 2013, the Wall Street Journal has reported.

Starting with a few million dollars and over a 100 workers, the move is said to mark the beginning of a bigger project.

The second largest personal computer manufacturer says the production lines are being built at a facility in Whitsett near Greensboro that allows clients to be more responsive to the U.S. corporate clients' demand for flexible supply and corporate customization.

While majority of PCs will continue to be built in China and Mexico, the U.S. plant is expected to cater to corporate clients. The new plant is considered to be a change of pace, for computer manufacturers Apple, HP and Dell no longer produce hardware in the United States.

Apparently, Lenovo is planning to manufacture engineering workstations, servers, Think-brand laptops, desktops and tablets in that facility, catering to education, business and government customers and general U.S. consumers, The Verge has stated.

The production line is being built into the existing distribution center the manufacturer owns in North Carolina and not in a separate building.

After entering the U.S. market, Lenovo transformed as a major employer in the Triangle when it acquired IBM’s PC business in 2005, the News & Observer has stated.

Lenovo’s rising sales have put it in an expansion mode even in a sluggish PC market as competitors are busy retrenching staff. Hewlett-Packard announced to cut 27,000 jobs in May while Dell plans to cut costs by $2 billion over three years, inevitably triggering layoffs as well.

Lenovo’s worldwide PC shipments rose 24.4 percent in the recent quarter, compared to a nearly 2 percent decline for the industry. The company that produces mobile phones and smart TVs for the Chinese market posted a 35 percent increase in revenue to $8 billion in its fiscal first quarter, which actually lagged the torrid 54 percent jump in revenue it enjoyed the preceding quarter.

Though Lenovo is No. 2 in worldwide PC sales, it is No. 4 in the U.S. market, research firm IDC has stated.

In a statement issued by the company, Yuanqing Yang, chairman and CEO, Lenovo said: “Lenovo is establishing a U.S. manufacturing base because we believe in the long-term strength of the American PC market and our own growth opportunities here. As Lenovo expands globally, we are establishing even deeper roots in each major market. In addition to localized sales and marketing teams, in our major countries we are establishing an even stronger manufacturing footprint, investing in R&D and ensuring that we hire top local talent. This global reach with local excellence helps us become even faster, more innovative and more responsive to our customers around the world.”

Over the past two years, Lenovo has invested in new plants and manufacturing joint ventures in China, Brazil and now the United States to produce PCs and smartphones.