HP, Foxconn to invest $3 bln in China PC hub -report

HONG KONG Aug 5 (Reuters) - Global computer maker Hewlett Packard (HPQ.N) and contract electronics manufacturer Foxconn International Holdings (2038.HK) will jointly invest $3 billion to develop a laptop PC manufacturing hub in Chongqing, the South China Morning Post reported on Wednesday.

The manufacturing base will have a capacity of 20 million PCs a year and will be fully operational in 2012, with most of the output exported to European markets, the paper said, citing an announcement at Tuesday's signing ceremony.

Output from the plant is estimated to be worth up to 400 billion yuan ($59 billion) by 2012, outpacing that of the city's top car and motorcycle industry. ($1=6.83 yuan) (Reporting by the Hong Kong newsroom; Editing by Ken Wills; tel 852-28436441))