Fresh from its acquisition of IBM?s Personal Computing Division, the Lenovo Group has announced that Singapore will be the regional headquarters for its operations in Asean and India and also the hub for international sales support operations, personal computing products supply chain control and its global treasury operations.

The completion of the acquisition on 1 May 2005 led to the creation of the third largest personal computing company in the world with combined annual PC revenue of about US$13 billion and a shipment volume of about 14 million units.

In a statement, the company said it expects to generate synergies in procurement and marketing expenses, as well as significant medium-term synergies resulting from new market expansion and product launches, manufacturing optimization and supply chain integration.

Of significance to Singapore are its plans to site its Integrated Supply Chain Control Center and to continue with the operation of IBM?s Singapore Trading Center here.

The Integrated Supply Chain Control Center is a global base for the procurement and manufacture of personal computing products, said Howie Lau, country general manager of Lenovo Singapore. ?The center will manage customer orders into our manufacturing facilities in the region. It will manage the various manufacturing assets and execute key activities like trading, procurement of components, sourcing, qualifying and management of OEM manufacturers for Lenovo products.?

The Singapore Trading Center will operate as part of the supply chain center which will procure Lenovo?s components and parts centrally in Singapore by leveraging the international network of global component suppliers and parts manufacturers, said Lau. ?This aims to establish an efficient and competitive global procurement hub for Lenovo?s manufacturing requirements,? he said.

The company will also site its Global Treasury Operations in Singapore, managing Lenovo International?s global cash and funding requirements from here.

?Lenovo chose Singapore due to its central location in Asean, world-class logistics infrastructure, excellent international banking network, and talented pool of professionals,? said Mary Ma (left), senior vice president and chief financial officer, Lenovo. ?Locating our international sales support center in Singapore, alongside our supply chain control center for PCs, will allow us to further our mission of delivering high-quality products and world-class service to our customers, while also benefiting from the operational efficiencies this location provides.?

As Lenovo?s regional Asean/South Asia headquarters, Lenovo Singapore will also provide sales and distribution management support to the region, including financial management, pricing, product and channel management.

With Lenovo?s acquisition of IBM?s Personal Computing Division, the two companies have also entered into a strategic alliance in which IBM will be Lenovo?s preferred partner of IT services and financing. Under this arrangement, customers in Singapore will continue to be supported by the same service and support team at IBM.

IBM Global Services will continue to be the preferred partner of warranty and maintenance services. Lenovo Singapore will also have access to IBM Singapore?s sales network, which comprises IBM staff joining Lenovo, as well as the channel partners, distributors, online and enterprise sales staff.