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Lenovo to establish storage JV with EMC

Shanghai Daily, August 2, 2012

• Lenovo Group Ltd Wednesday announced it will establish a joint venture with a United States-based storage product giant, which is expected to help the world's second-biggest personal computer maker expand into the high-margin storage and server markets.

  As part of the agreement, Lenovo will resell machines made by EMC. The sales will initially happen in China before moving abroad, according to announcements made by the two sides.

  Lenovo will hold 51 percent of the joint venture by contributing an undisclosed sum of cash and EMC will hold the remainder through assets and resources, according to Lenovo, which declined to reveal details.

  "This cooperation is another step in adopting our PC Plus Strategy," Yang Yuanqing, Lenovo's chairman, said in a statement. "The server and storage business will also improve our backdoor service level."

  The new storage equipment, which is often used in powerful server computers among corporate clients, will help Lenovo improve its profit margin and expand beyond the Chinese market.

  The reseller agreement between Lenovo and EMC replaces a partnership EMC had with Dell Inc.

  Lenovo and EMC will also work together on servers to be sold by Lenovo.

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