HP plans to operate a 20,000-square-meter facility in Chongqing, where it will make notebook and desktop PCs for customers in China, according to the terms of a memorandum of understanding with the Chongqing Municipality.

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.

"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."

"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," said Todd Bradley, executive VP, personal systems group, HP.

Chongqing is one of the fastest growing cities in China. The city has 500,000 university students and more than 1,000 R&D institutions. In addition to the educated work force, development conditions offered by the local government made the development attractive to HP.

The 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.