Hewlett-Packard has announced plans to operate a computer manufacturing plant in China's Chongqing municipality.

The Chinese government is slated to build the company a 20,000-square-metre facility that will produce notebook and desktop PCs.

"When in full operation, the HP-managed plant is expected to have the capacity to meet market demand in Chongqing as well as other parts of China across government, public and retail sectors," HP said in a statement.

Todd Bradley, executive vice president of HP's Personal Systems Group, told reporters that HP would continue to focus on its long-term expansion plans, despite difficult economic conditions.

"We manage our business very conservatively on a day-to-day basis. We're certainly aware of the current situation. But our responsibility is to take that awareness in the short-term and manage it so we have long-term profitable growth," said Bradley.

As IT Examiner previously reported, HP recently sacked 3,378 staff in the UK following its takeover of EDS. The Public and Commercial Services (PCS) union threatened to "vigorously oppose" the cuts, which it says will hit the delivery of computerised government services to benefit claimants, pensioners, Ministry of Defence personnel and Home Office and prison services.

Over the whole Europe, Middle East and Africa region, around 9,300 employees are likely to be fired, although half of these may be replaced. As many as 24,500 may go worldwide. X

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