Beijing time on December 20th morning news, as part of the plan to reduce spending, Lenovo Inc restructuring of its business in Brazil.
the company originally planned in the Ituri city St Paul Brazil (Itu) to establish an area of 52 thousand square meters factory, now moved to the suburbs, decided to indaiatuba (Indaiatuba), the factory area of half.
according to the Brazil local economic value reported that Lenovo’s employees in Brazil also reduced from 5000 to 800 people in order to make the cost to adapt to the new market reality".
"the advantage of this is that the size of the market remains consistent with the past three quarters, we believe that the downturn has ended," Lenovo Silvio, President of Brazil PC · (Silvio Stagni); Sistani said, "everybody is (recession) impact on shopping is conservative. Despite the economic crisis in Brazil in the past few years, it is only a matter of time before it recovers its position as the world’s leading electronics market."
indaiatuba factory produced about 90% sold in Brazil, the annual output of about 1 million. More expensive items, such as laptop Yoga 910, are imported from China and the United states.
Lenovo is currently ranked third in the Brazil PC market, the market share of 13%, behind DELL and HP.
back in 2012, Lenovo acquired the Brazil consumer electronics company CCE, to enhance its market share in Brazil. Prior to the acquisition of CCE, the Chinese company also bid to acquire a number of other local manufacturers, such as Itautec and Positivo.
later in the year, Lenovo has sold CCE to the original owner, the transaction price has not been disclosed. The company said that the purpose of making this decision is to focus on value-added products, such as smart phones and high-end PC and server.
according to IDC market research statistics, the third quarter of 2016, Brazil PC market sales hit a new low, down by 35% over the same period last year, compared with the same quarter last year, a decrease of 11%. Analysts do not expect improvement in the coming months.