Aims to improve its capacity to innovate in mobile internet market
Lenovo Group has broken ground on its industrial base in Wuhan of China and plans to invest about RMB5bn ($800m) on the facility.
The Lenovo (Wuhan) Industrial Base will include facilities for mobile internet product research and development (R&D), production and tablets, smartphones, and other new mobile internet products that will cater to the Chinese and global markets.
Lenovo Group chairman and CEO Yang Yuanqing said the company is accelerating development in smart phones, tablets, and other mobile Internet terminal markets.
"When it begins operations, the Lenovo (Wuhan) Industrial Base will greatly improve our innovative capability and further optimize our supply chain, giving us a solid foundation to win in a broader market," added Yang.
The total sales revenue generated from the industrial base is expected to reach RMB10bn by 2014, increasing to RMB50bn within the next five years.
The facility is also expected to help improve the company’s entire supply chain and R&D and marketing systems, by bringing more products as well as house nearly 10,000 employees in the coming years, in a variety of related businesses.
The facility will begin operations in October 2013.
Lenovo, with headquarters in Beijing and North Carolina, is now the world’s second largest PC maker with a share of 13.4% in first-quarter after Hewlett-Packard’s 18% share, according to research firm IDC.