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Lenovo consolidates with IBM, sets up India branch
By Liu Baijia (China Daily)
Updated: 2005-10-01 06:07

Computer giant Lenovo Group has sped up consolidation with IBM's PC business, and formed a unit in India to transfer its success in China to other emerging markets.

Yang Yuanqing, chairman of Lenovo, the world's third largest computer maker, said his company would start the second stage of the consolidation process from October 15 eight months ahead of schedule.

The Chinese firm acquired IBM's personal computer business in December, including the famous Think brands of notebooks and desktop computers.

During the first stage of the consolidation process, Lenovo Group's original business and the former IBM business ran separately under the names Lenovo China and Lenovo International to avoid drastic changes to customers and the organization of the company.

"The process will take at least five months, so we can have a smooth operation in organizing the management and a stable increase in our business in domestic and international markets," Yang said on Friday.

Chen Shaopeng, vice-president of sales in the Chinese market, said there would not be any layoffs in the consolidation in China, where Lenovo and IBM had two separate groups of staff, distribution channels, and management teams.

Eagle Zhang, general manager of the domestic research house Analysys International, believes Lenovo's successes in the first half of this year made the company confident in accelerating consolidation.
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