Chinese group Lenovo wants to start manufacturing PCs in Brazil

29 May 2012

Chinese group Lenovo plans to make acquisitions in Brazil in order to increase its presence in emerging markets outside China, where it is the largest provider of personal computers (PCs) by turnover, The Wall Street Journal reported.

Speaking to the newspaper, the group’s president for Asia, Oceania, and Latin America, Milko Van Duijl, said that the company, which is the second-largest manufacturer of PCs after US company Hewlett-Packard, is considering building a production centre in Brazil in order to avoid the high taxes on imported products.

“We are interested in acquiring or cooperating with companies that operate in this business in Brazil, but we don’t have a preference for any one in particular,” said Van Duijl.

He also noted that without a local production base there was no chance for the group, as after adding taxes to the cost of producing the computers, which are products with a very low profit margin, the price is no longer competitive.

The Lenovo group, which is China’s largest PC manufacturer with a market share of 30 percent, has doubled its efforts to expand to other emerging markets such as India, Indonesia, Brazil, Argentina, and Mexico, where demand continues to grow.

In Brazil, the Lenovo brand was in 9th place by sales at the end of March, which accounts for a market share of 3.6 percent, as part of an operation that has been running at a loss. (macauhub)