Lenovo Group, the world’s largest personal computer supplier, plans to increase production overseas, as manufacturing in China has slowed down because of the coronavirus outbreak. Chairman and chief executive Yang Yuanqing said on Thursday that the company’s “global manufacturing footprint” – including factories in Brazil, Mexico, India and the United States – will help keep it ahead of ongoing disruptions in domestic production. “We have also been working closely with our supply chain partners to ensure normal operation,” Yang said in a conference call after Lenovo reported better-than-expected earnings in the December quarter. The company’s efforts reflect the current difficulties of manufacturing in China – dubbed the “world’s factory” for everything from clothing and cars to smartphones and toys – amid rigid government measures to contain the spread of the deadly coronavirus. Those directives included extending the Lunar New Year holiday as well as ordering companies and factories across 17 cities and provinces to cease operations until February 9. Lenovo’s manufacturing complex in Wuhan, capital of central China’s Hubei province and epicentre of the coronavirus outbreak, has remained shut down, limiting the volume of smartphones and tablets the company can produce. While the delayed return of workers to factories is a big concern, Yang said: “We are more confident about production by the end of this month.” Hong Kong-listed Lenovo, which operates in about 180 markets worldwide, reported a better-than-expected 11 per cent increase in net profit to US$258 million in its fiscal third quarter ended December 31. Revenue reached a record quarterly high of US$14.1 billion. Lenovo remained atop the global personal computer market with record shipments of 17.8 million units in the December quarter, finishing the year with a market share of 24.3 per cent, according to research firm IDC. Although sales in China this quarter are expected to be negatively affected by the outbreak, Yang said “demand from the rest of the world remains strong”. Purchase the China AI Report 2020 brought to you by SCMP Research and enjoy a 20% discount (original price US$400). This 60-page all new intelligence report gives you first-hand insights and analysis into the latest industry developments and intelligence about China AI. Get exclusive access to our webinars for continuous learning, and interact with China AI executives in live Q&A. Offer valid until 31 March 2020.