Lenovo, Compal's JV Formally Starts ProductionJanuary 1, 2013 | Print | Comments | Category: Business, Computing
The joint venture established by Lenovo and Compal has been formally put into production in Hefei, Anhui province.
Located in Hefei Economic & Technological Development Area, the new joint venture will be built into a computer project with production capacity of ten million units. The new project has a 457-mu manufacturing base, over 170,000 square meters of plant areas, and over 100,000 square meters of hub warehouses, which will be used to support the manufacturing of Lenovo laptops and all-in-one PCs.
So far, the joint venture has set up 18 research labs and four technical and SMT product lines. Meanwhile, it has achieved monthly capacity of 500,000 laptops. By spring of 2013, it will have monthly production capacity of one million units.
With the operation of the manufacturing base, twelve supporting enterprises have established operating centers in Hefei, and 128 raw material suppliers have delivered their products to the hub warehouses of the base.
In September 2011, Lenovo and Compal announced their plans to establish a joint venture, in which Lenovo would hold a 51% stake and Compal would hold the remaining 49%. According to their agreement, the two parties will divide their investments into two phases. For the first phase, they will invest USD100 million in the joint venture; while for the second phase, they will invest USD200 million.
Lenovo previously revealed that the board of the joint venture will be formed by seven directors, including four nominated by Lenovo and three nominated by Compal. At present, Zhang Hui has been appointed executive director and chief executive officer of the joint venture.
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