United States-based Lexmark, the world's sixth-largest printer manufacturer, has chosen Hong Kong for its Asia-Pacific headquarters. The move comes with the appointment of Philip Carmichael as the new vice-president and general manager for the Asia-Pacific region. Mr Carmichael succeeds Don Shropshire but, unlike his predecessor who was stationed in the US, he will work at the Hong Kong office. 'We intend to run our business for Asia from Asia,' said Mr Carmichael, who is now the company's most senior executive based outside of the US. He said Lexmark, which has more than 8,000 employees worldwide and had sales of US$3 billion last year, chose Hong Kong over other Asian cities for several reasons. He cited the Government's commitment to the hi-tech industry, the education system's dedication to producing talented graduates and Hong Kong's strategic position at the centre of Lexmark's Asian market. Following Japan, the mainland was the largest printer consumer in Asia and, together with Australia, the three countries made up 75 to 80 per cent of the region's revenue, Mr Carmichael said. 'It makes sense for us to be where the business is,' he said. Lexmark was also swayed by Hong Kong's position as a gateway to the mainland, which Mr Carmichael called the most sought-after emerging market. The Asia-Pacific region leads the growth of the company, though Lexmark would not disclose any geographically specific revenue figures. Liming Zhao, Lexmark president for greater China and Korea, said Lexmark was beating the average industry growth rate for its class in the Asia-Pacific region. Mr Zhao also said that a significant portion of Lexmark's worldwide product, in particular its inkjet printers, was made by the company's 13 Asian manufacturing sites. The factories in the mainland, especially in Shenzhen and Guangzhou, led production, Mr Carmichael said. Lexmark plans to open another manufacturing site in the Philippines and branch offices in Shanghai and Guangzhou. The company's growth last year coincided with several new Lexmark initiatives, including an agreement with Compaq to develop three custom-design models to be bundled with Compaq PCs. Mr Carmichael said Lexmark's first priority was the expansion of industry-specific 'vertical' markets, where Lexmark sells most of its high-end laser printers. In the US, Lexmark's most successful vertical markets have been the pharmacy, retail store and banking industries. In Hong Kong, Lexmark customers include Hongkong and Shanghai Banking Corp and Hang Seng Bank. LOOKING EAST Region leads growth of company Priority to expand vertical markets