MUNICH, Germany — Chinese computer manufacturer Lenovo is planning to enter the consumer business. The company presently is in the process of finding the future production location for its desktop computers.

No decision has been taken yet as to the location for the desktop computer production. Presently, the company maintains a production site in Hungary. According to the company, this site will be replaced by a new plant, probably in Ireland, Poland or Hungary. The company's laptops will continue to be manufactured in China.

A spokesperson at the German Lenovo subsidiary explained that Lenovo is in the process of building up new assembly facilities in India and Mexico which will include logistics and distribution services. While presently the production widely is outsourced to EMS companies, Lenovo plans to move it back into its own business responsibility.

The consumer business entry is planned as a worldwide move, the spokesperson explained. The company's schedule provides for a starting shot in the first half of 2008, "probably in the second quarter," the spokesperson said.

The company has not yet selected a specific channel strategy. "We are about to develop a worldwide strategy," the spokesperson said, adding that the offerings will be targeted at retail markets.