Laptop plant to be built in Chongqing by HP
A manufacturing plant for laptops will be set up in Chongqing by global computer maker Hewlett Packard (HP) and contract manufacturer of electronic products, Foxconn International Holdings, which plan to jointly invest $3billion, marking the fifth move of HP’s development in Chongqing during the past three years.
The investment is made up of two projects, a laptop computer export base of HP’s and a manufacturing base of Foxconn’s. The former will order the latter to make production. Besides, Foxconn will also establish sales centers for its own electronic products in Chongqing.
According to the plan, the annual production of the plant in Chongqing will be 20 million laptops. And most of the output would be exported to the European market.
Chongqing will benefit greatly from this investment. The output value of the project is estimated to exceed 200 billion yuan, amounting to one-third of the total industrial output value of the city at present, according to the municipal government of Chongqing. At the same time, the investment is likely to expand Chongqing’s trade by four times, to $40 billion in future.
By the time when the plant goes on stream in 2012, the two projects would provide at least 50,000 jobs and the automobile sector which holds the biggest industry of the city currently would give way to the electronics and information industry.
As the fifth investment of HP’s in Chongqing following the investments in a software procurement base, a software-testing center, a call center and a manufacturing plant with an annual capacity of 4 million desktop computers, HP has moved its production center from Singapore to Chongqing.
And HP has reached a new agreement with Chongqing to allocate the majority of its new computer producing plants in the future.
HP’s Executive Vice-President Todd Bradley said it would continue to invest in the country, for China plays an important role in the company’s future development.
According to Vice-Mayor Huang Qifan, what attracts international companies like HP and Foxconn to invest in Chongqing is its low-cost labor, cheap raw materials and favorable tax policies.
Huang said several other international companies including Cisco Systems Inc are now also in contact with Chongqing for investment.
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