IBM opens Chinese server recycling plant
March 29, 2012 Category Uncategorized
International Business Machines (IBM) has opened China’s first dedicated plant for rebuilding and refurbishing old server computers, placing it at the forefront of a niche domestic market worth about USD18 billion by 2014. The firm said the new Shenzhen “re-manufacturing center”, its ninth such facility worldwide, would help reduce the environmental impact of “e-waste” – discarded electrical and electronic devices – by extending the life of older information technology equipment that would otherwise go into landfills. Richard Dicks, General Manager at IBM’s Global Asset Recovery Services unit, said the firm was “the first IT provider licensed by the government to re-manufacture servers in mainland China”. The Shenzhen facility will initially handle hundreds of IBM’s Power Systems-brand servers that the firm plans to buy this year from corporate customers, as they upgrade to new IBM equipment. Each server will be reconditioned, tested and certified by IBM or rebuilt to meet specific customer needs. Labelled “IBM Certified Pre-owned Equipment”, these low-cost servers will be sold mostly to small and mid-sized businesses. IBM said the Shenzhen re-manufacturing center will rapidly expand to annually process about 100,000 low-end and mid-range IBM servers, personal computers (PCs), and servers from other computer brands by 2014. Technology research firm IDC said the Chinese market for used information-technology equipment would reach USD25 billion by 2014. Preliminary estimates by market research firm Gartner show that IBM led China, the world’s second-largest information technology market after the United States, in total server sales last year. IBM’s China revenue climbed 27% to USD2.51 billion last year, from USD1.97 billion in 2010 – seizing a 44 % domestic market share, the South China Morning Post reports.
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