Supporting Service Providers Follow IT Giants to Chongqing
HPQ | Quote | Chart | News | PowerRating -- A host of information technology (IT) supporting service providers are looking to follow the steps of the world's top-ranking electronics makers to set foot in Chongqing, a municipality in southwest China.
DB Schenker, an integrated logistics service provider in Germany, is brewing an investment in the boomtown, where its long-term partner Hewlett-Packard Company (NYSE: HPQ | Quote | Chart | News | PowerRating) is gearing up for a 4-million personal computer production base project.
DB Schenker will get an order to deliver and ship PCs and store raw materials for the newly-launched HP Chongqing project, disclosed people familiar with the matter on November 9, noting that the Berlin-based company has picked a 2,400-square meter office in the building set up by HP.
"DB Schenker has been working together with HP for nearly eight years," said an executive in charge of the DB Schenker Chongqing project, "the company won the order from US PC giant after several rounds of biddings kicked off a year ago."
DB Schenker once provided logistics services with an annual output value of CNY 10 million to CNY 20 million for HP in other Chinese cities, according to the executive, declining to say how much the Chongqing logistics project will generate a year.
Notably, DB Schenker is not the only company eyeing a presence in the southwest Chinese city. People close to the Xiyong Microelectronics Industry Park said that a group of IT supporting services providers would start operation in the city any time soon.
A Singaprore-based company has set up a subsidiary in Chongqing to produce IT accessory products such as CDs and labels, according to a source, adding that the company is busy recruiting employees for its newborn unit.
Another packaging company launched a branch in the city earlier this September. With a registered capital of CNY 2 million, the company will be engaged in the processing and manufacturing of hardware, woodwork, and bags, as well as packaging of electronics and accessories.
A batch of electronics accessory makers are trying to dip toe in the Xiyong Microelectronics Industry Park to capitalize on the opportunities provided by the international IT giants like HP and Foxconn Technology Group, pointed out an industry insider.
In December 2009, HP will start trial production at its PC base in Chongqing. In late January 2010, the first Chongqing-made PC is expected to roll off the production line at the base, whose 4-million PC are expected to be sold in China.
(USD 1 = CNY 6.83)
Source: www.enet.com.cn (November 10, 2009)
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