Venture brings Lenovo closer to customers in Argentina
BUENOS AIRES, Argentina – August 25, 2011: Lenovo (HKSE: 992) (ADR: LNVGY) today announced that production of Lenovo-branded laptop PCs to be sold in Argentina began today in Ushuaia, the capital city of Tierra del Fuego. The companyestablished this capability through an agreement with Newsan, a leading manufacturer of electronics and household appliances in Argentina. The relationship follows the rapidly growing PC market in Argentina, and will help Lenovo get even closer to its customers, while responding to changing business requirements and regulations in the country.
The announcement was made at a meeting attended by executives from both companies at Argentina’s National Ministry of Industry, with the Minister Débora Giorgi presiding. The new manufacturing line, which Newsan will operate for Lenovo, will produce Lenovo-branded laptop PCs. It is currently located within an existing Newsan production facility in Ushuaia, and both companies intend to extend the venture by opening a new, dedicated plant in the city in 2012.
“This investment is a reflection of our confidence in the tremendous growth potential of Argentina’s PC market,” said Alberto Paiva, general manager of Lenovo Argentina and Venezuela. “Establishing a strong local presence positions Lenovo to deliver excellent service to our customers and to advance our goal of being an industry leader in the country.”
“The Ushuaia factory is the latest extension of our flexible, global production network that brings all customers, in all PC market segments, Lenovo’s legendary product innovation and quality, delivered with competitive speed and accuracy,” added John Egan, vice president of Lenovo Manufacturing and Engineering. "The Argentina marketplace has tremendous potential for growth, and we are keen to build even closer relationships with local customers, partners, and suppliers."
The venture with Newsan establishes a strong in-country presence that positions Lenovo to compete aggressively for a larger piece of one of Latin America’s largest and fastest growing PC markets. According to industry research firm IDC, Argentina’s PC unit sales are expected to grow over 34 percent this year. Additionally, according to a 2011 forecast by investment bank Goldman Sachs, the country’s overall gross domestic product (GDP) will expand 7.7 percent in the coming year.
Lenovo is currently the second largest PC supplier in Argentina with a 17.3 percent market share in the second quarter of 2011, and its venture with Newsan will help establish a strong in-country presence in one of Latin America’s largest and fastest growing PC markets.
Lenovo (HKSE: 992) (ADR: LNVGY) is a $US21 billion personal technology company serving customers in more than 160 countries, and the world’s fourth-largest PC vendor. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.