Lenovo, Newsan invest US$12mn to launch local production

- Wednesday, August 31, 2011

Lenovo, Newsan invest US$12mn to launch local production

Chinese PC manufacturer Lenovo and Argentine electronics manufacturer Newsan have made a US$12mn joint investment to start producing laptops in Tierra del Fuego province, Lenovo Argentina sales manager Alexander Raven told BNamericas.

Raven said that until the end of this year, Lenovo's laptops will be manufactured at a Newsan factory. But during 2012, Newsan will open a new facility, where the Chinese firm will have more production lines available.

The executive said the new local production will create a total of 150 jobs.

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In three years, Lenovo Argentina expects to produce 70% of units locally and import the remainder. "We will continue importing niche or corporate products," Raven said. At the moment, the company manufactures G470 laptops in Argentina.

Lenovo Argentina currently has a market share of some 17%. "Our plan is to continue growing in market share and maintain healthy growth," the executive noted, without providing hard numbers.

Argentina's government offers fiscal benefits for IT companies to set up manufacturing operations in Tierra del Fuego, the country's southernmost province.

Lenovo grew global sales 15% year-on-year to US$5.92bn during the first quarter of fiscal 2012, ended June 30. The company's consolidated sales in emerging markets - including Latin America - totaled US$1bn for the first fiscal quarter, or 17.5% of its worldwide sales.