Lenovo to build more plants in Russia, India

Aug. 25, 2009 (China Knowledge) - Lenovo Group Ltd<0992>, the world's fourth-largest PC manufacturer, plans to build more manufacturing plants in emerging markets such as Russia and India in anticipation of future economic recovery, sources reported.

Lenovo CFO Huang Weiming said that the plan is in accordance with the firm's strategy and that the firm expects to develop business in emerging markets and increase its market share in mainland China. No financial details of the plan have been disclosed so far.

Sales revenue generated from emerging markets accounted for 14% of Lenovo's' total sales revenue, while mainland China generated 48% of the firm's total sales revenue. Huang added that the rural home appliance subsidy program provided Lenovo with more opportunities to expand its sales channels and increase its sales income.

Meanwhile, Lenovo hopes to see recovery in markets in developed countries, which contributed 38% of the firm's total sales revenue.

Lenovo experienced four consecutive months of losses before it worked out the new plan. The firm is expected to return to profit in the current fiscal year, partly because of the stable recovery of its business in mainland China and partly because of the much-anticipated launch of Windows 7, which will boost market demand, according to some industry analysts.