HP, an IT company that deals with software and infrastructure services, entered into a joint venture with Foxconn, a wholly-owned subsidiary of Hon Hai, to manufacture HP PCs in Russia. The two companies agreed to invest $50 million in Russia.

 

As part of the joint venture, Foxconn will set up a 32,000-square-meter manufacturing facility in St. Petersburg, mainly for the production of HP PCs in Russia. From this facility, the company plans to ship up to 40,000 desktop PCs per moth for the Russian market.

 

Foxconn RUS is a wholly-owned subsidiary of Hon Hai Precision Industry Co Ltd. Hon Hai has its own e-enabled components, modules, move and service (eCMMS) model with which it serves many CEM/EMS/ODM industries.

 

"We are confident that our cooperation with HP in this venture will support and strengthen HP in serving the needs of the Russian market. St. Petersburg's strong talent pool, strategic location and government support make it a wonderful location for our operations,” said Terry Gou, chairman and chief executive officer, Hon Hai Precision Industry Co Ltd.

Through the new manufacturing facility, Foxconn plans to expand its manufacturing businesses to other companies as well. 

 

HP owns a significant share in the IT market in Russia with 10 offices and a research and development lab in Russia.

 

"Russian demand for the latest PC technology is developing quickly, and HP sees increasing interest from consumer and commercial customers," said Eric Cador, senior vice president, Personal Systems Group - Europe, Middle East and Africa, HP. "This project will help us meet local customer demand by enabling HP to deliver products quickly and competitively in Russia."

With the new venture, Hon Hai will make their entry into Russia. At present, Hon Hai has production locations in Brazil, Vietnam, India, China, Hungary, USA, Mexico, and Australia.