To strengthen HP’s ability to serve the fast-growing Chinese market and accelerate economic development in West China, HP and China’s Chongqing Municipality announced plans for an advanced manufacturing complex.

HP plans to operate a 20,000-square-meter facility in Chongqing, where it will make notebook and desktop PCs for customers in the world’s most populous country. Manufacturing operations are expected to begin in 2010. 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 is the second-largest PC maker in China, and the leading foreign PC vendor in China, according to IDC. HP does business in more than 680 cities in China and nearly 7,000 Chinese retail stores carry HP products.

“Our vision of transforming Chongqing into China’s West IT center requires strong participation from the world’s most innovative and respected companies,” said Wang Hongju, mayor, Chongqing Municipality. “We welcome and support the HP venture, which will accelerate the development and bring new economic opportunity to an area previously untapped.”

“As the world’s leading PC maker, the world’s largest component buyer and a contributor to the Chinese economy since 1981, HP is proud to announce plans to expand our commitment to the Chinese marketplace,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We look forward to expanding opportunities for local talent in the heart of China to help us better serve the Chinese market for computing products and services. We thank the Chinese government for this opportunity to forge a closer partnership between Chongqing and HP.”

Chongqing is one of the fastest growing cities in China. According to the National Bureau of Statistics, in 2007, its GDP was $410 billion (RMB) with a growth rate of 15.6 percent over the prior year. The city has 500,000 university students and more than 1,000 research and development institutions. In addition to the educated work force, development conditions offered by the local government made the development attractive to HP.

This news follows a joint announcement related to an HP Global Call Center to provide sales-related support for HP products and services and the development of an information-sharing platform for Chongqing’s University Town that will help reduce redundant IT investments by tertiary institutions.