The announcement was made at a meeting attended by executives from both companies at Argentina’s National Ministry of Industry, with the Minister Débora Giorgi presiding. The new manufacturing line, which Newsan will operate for Lenovo, will produce Lenovo-branded laptop PCs. It is currently located within an existing Newsan production facility in Ushuaia, and both companies intend to extend the venture by opening a new, dedicated plant in the city in 2012.
“This investment is a reflection of our confidence in the tremendous growth potential of Argentina’s PC market,” said Alberto Paiva, general manager of Lenovo Argentina and Venezuela. “Establishing a strong local presence positions Lenovo to deliver excellent service to our customers and to advance our goal of being an industry leader in the country.”
“The Ushuaia factory is the latest extension of our flexible, global production network that brings all customers, in all PC market segments, Lenovo’s legendary product innovation and quality, delivered with competitive speed and accuracy,” added John Egan, vice president of Lenovo Manufacturing and Engineering. “The Argentina marketplace has tremendous potential for growth, and we are keen to build even closer relationships with local customers, partners, and suppliers.”
The venture with Newsan establishes a strong in-country presence that positions Lenovo to compete aggressively for a larger piece of one of Latin America’s largest and fastest growing PC markets. According to industry research firm IDC, Argentina’s PC unit sales are expected to grow over 34 percent this year. Additionally, according to a 2011 forecast by investment bank Goldman Sachs, the country’s overall gross domestic product (GDP) will expand 7.7 percent in the coming year.
Lenovo is currently the second largest PC supplier in Argentina with a 17.3 percent market share in the second quarter of 2011, and its venture with Newsan will help establish a strong in-country presence in one of Latin America’s largest and fastest growing PC markets.