07/12/2012 16h04

With support from Investe SP, Lenovo intends to double its share in the Brazilian market with new facilities in Itu

At an event carried out in Palácio dos Bandeirantes, the company signed a memorandum with Investe SP for the installation of a factory and distribution center in Itu.

To double its share in the Brazilian market and become the country's greatest computer manufacturer. These are Lenovo’s goals in Brazil, reported by the president of the company in the country, Dan Stone, to the Governor Geraldo Alckmin on Thursday, July 12, during the signing of a memorandum of understanding with Investe SP.  The document establishes that the company will invest $ 30 million in the municipality of Itu, located 100 km from the state capital.

The Governor of São Paulo highlighted the city selection and the work developed by the State’s investment promotion agency. “Itu is famous for having everything big. We have excellent technical schools, technology universities and research institutes in the region. You can count on Investe Sao Paulo, for we are partners of the investors”, said Alckmin.

The funds will be used for setting up a factory and a distribution center that will produce and deliver several personal computer models. About 700 direct jobs will be created when the units are fully operational, two years from now.

The President of Lenovo in Brazil explained why the company decided to settle in the State of São Paulo. “We analyzed several places and decided to establish our factory in a location that could actually become our partner”.

Support
According to the memorandum signed on Thursday, the company will count on the support of Investe São Paulo – Agência Paulista de Promoção de Investimentos e Competitividade, a State Government agency linked to the Ministry of Economic Development, Science and Technology, which will render free environmental, tax and infrastructure counseling services. The Agency will also be responsible for conducting the necessary articulation with public and private bodies, also supporting the company in the qualification of manpower.

“Lenovo’s arrival to Itu will stir up the entire region, because the company will require specialized service renderers and material suppliers. This is going to heat up the local economy”, remarked the president of Investe SP, Luciano Almeida.

He stressed that the State of São Paulo enables the companies that produce goods and computer equipment to benefit from the reduction or even full release from the GST. This exemption depends on the rating of products manufactured in the State, according to the Decree 51.624/2007.

The new facilities
As the second-largest vendor of personal computers in the world, Lenovo will set up its factory and distribution center on a plot of 325 thousand square meters. The estimate is that operations will start in December this year.

Once the operation has been consolidated and the goals achieved in the Brazilian market – which is, currently, the third largest personal computer market in the world –, Lenovo is analyzing the possibility of using the new facilities as a platform for exporting to other countries. “We are the number 1 in several countries and want to be number 1 here as well”, said Stone.

Also attending the event were the Secretary of Planning and Regional Development, Julio Semeghini, the Deputy Secretary of Economic Development, Science and Technology, Luiz Carlos Quadrelli, Congressman William Woo, Investe SP’s Director of Institutional and International Relations, Sérgio Costa, and the Agency's project manager, Franklin Ribeiro.