HP to build regional China HQ in Shanghai

HP aims to expand its presence in China through new projects

HP plans to expand its manufacturing base in Shanghai and build a regional China headquarters in the city as part of the company's efforts to grow in a country expected to become the world's largest PC market.

HP made the announcement on Sunday as the company's CEO Leo Apotheker met Shanghai government officials. In China, the city has become HP's largest employee base, with six sites that cover PC manufacturing, product research and the company's different business groups.

HP intends to consolidate these existing sites into one multi-purpose campus, according to a company statement. The PC manufacturer also plans to establish in Shanghai a regional China headquarters for HP's Personal System Group, which includes personal computers, technical workstations, tablets and smartphones.

"Shanghai will be an important part of HP's next phase of growth and innovation in China, and we look forward to expanding our close partnership with this city," said Apotheker in a statement.

HP is making the investment as China is forecast to surpass the U.S. in PC unit shipments next year, according to research firm IDC. In 2013, China's PC sales by value will also exceed those of the U.S.

But while the company is the world's top PC vendor with a 20.2 percent market share, HP lags behinds the competition in China. The Chinese PC maker Lenovo leads with a 27.6 percent share in the country, according to IDC.

Dell places second, with a 10.3 percent share, and HP ranks third, with a 9.3 percent share.

Earlier this month, HP announced it will sell market-specific products in China and said that company executive Todd Bradley,who runs HP's Personal Systems Group, will also lead efforts to grow the company's business in China.

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Tags business issuesdesktop pcshardware systemsinvestmentsgovernmentHewlett-Packard

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Michael Kan

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