HP to build Chinese plant

After thinking about cutting its workforce in China, it seems that the maker of expensive printer ink, HP has changed its mind.

The company has announced that it will build a printer factory in the southwestern Chinese city of Chongqing.

According to  China Daily,  Chief Executive Officer Meg Whitman said that the merger of its printer and PC businesses will mean a Chinese expansion.

Chinese manufacturing would have gone west if HP had sold off its hardware business and become a software company.

However, Whitman said that the printing and PC merger would jumpstart growth.

HP has been watching as its share in the Chinese market has declined.

Whitman said that HP will place greater emphasis on winning back a large percentage by investing in PCs and printers and rebuilding its brand.

The thought is that by having a local plant in China it can get its products on local shelves cheaper.  However, in China, HP faces some stiff competition.