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HP clarifies roles of Chongqing factory

April 25, 2012

Facility will only produce entry-level inkjet printers, states OEM.

Printer manufacturer HP has clarified a number of inaccuracies from a number of outlets reporting on the planned manufacturing facility in Chongqing, including claims of laser printer manufacturing and the agreement between the OEM and the Chongqing government, reports Actionable Intelligence.

HP’s official statement stated: “HP’s local manufacturing supplier is planning to build a manufacturing facility in Chongqing. HP expects to use this facility, once completed, to manufacture entry-level HP inkjet printers”, denying that the factory will produce laser printers and inkjet consumables.

The OEM also stated that Foxconn, as HP’s local manufacturing supplier, signed the agreement with the Chongqing government regarding the construction of the facility, as opposed to HP directly.

A number of outlets including PCWorld and PC Advisor had previously reported that HP signed an agreement to build the new facility in Chongqing, which would be completed in two to three years and would produce 40 million inkjet printers, 20 million laser printers and 150 million inkjet cartridges by 2015.

Actionable Intelligence commented on a number of issues, remarking: “The new about the new manufacturing base left us with lots of questions […] If, as the PCWorld article stated, the facility would be producing laser printers, that would be particularly big news as Canon is HP’s exclusive laser manufacturing partner. So, we wondered, is Canon a partner in this endeavour? And if not, was this story even bigger news and was HP contracting with a new laser manufacturing partner?”

In light of HP’s clarifications: “Thus, while the news of HP’s new manufacturing base for entry-level inkjet printers is significant, to be sure, it does not seem that the Chongqing facility represents quite the seismic shift in HP’s printer and supplies manufacturing base as was first reported.”

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