The consolidation of Chinese computer giant Lenovo Group and the personal computer unit of International Business Machines Corp has taken its first step as executives revealed their strategies for the Chinese market.
Liu Jun, would-be co-chief operating officer of Lenovo Group, said on Wednesday that his company would adopt a matrix structure in its management with two operations - Lenovo China and Lenovo International.
The biggest Chinese computer maker acquired Big Blue's PC business on December 18. Liu said the US government is still reviewing the deal and it is expected to make a decision in late March.
IBM made the proposal on Wednesday to the Committee on Foreign Investment in the United States, the government body that must approve the US$1.25 billion sale, Bloomberg News reported on Wednesday.
According to the organizational structure of the new Lenovo, IBM Executive Steve Ward will act as group chief executive officer.
Lenovo China will be the operation center in China, the global research management center, and a global procurement center.
Liu is scheduled to be head of Lenovo China and Fran O'Sullivan, former general manager of IBM's personal computer Division, will be another co-COO in charge of Lenovo International.
In China, Lenovo China and Lenovo International will co-exist for a period  in the transition but with enhanced cooperation in bidding customers.
Janet Ang, general manager of IBM China's PC business, will take the post of IBM International's general manager for China operations.
She said her team had started a round of visits to major IBM PC customers in the country to maintain their confidence and loyalty.
Liu said one of the first things the new company will do is to ensure that Lenovo China and Lenovo International combine components to cut costs and increase their bargaining power with suppliers.
Lenovo will also move some production of its notebooks to International Information Product Co Ltd, the most vital production base of IBM in the Asia-Pacific region.
At the same time, some of IBM's ThinkCentre desktop computers will also be made in China.