Lenovo CEO says no plans to buy Dell factories

SINGAPORE (Reuters) – Lenovo Group (0992.HK: Quote, Profile, Research, Stock Buzz), the world’s fourth-largest PC maker, said on Tuesday it has no plans to buy computer factories from rival Dell Inc (DELL.O: Quote, Profile, Research, Stock Buzz), its Chief Executive William Amelio said on Tuesday.

Lenovo has enough capacity, Amelio told reporters on the sidelines of a conference in Singapore.

Dell is trying to sell factories around the world to cut costs and improve profitability, the Wall Street Journal reported last week.

Amelio also warned that the weakness in the global economy could affect tech spending by companies.

“The only thing I would caution is that we are coming into a budget cycle now,” he said, adding this could mean companies would be reassessing their operating expenses.

Lenovo posted a 65 percent rise in first quarter earnings that ended June, the slowest growth in a year, as it copes with a U.S. slowdown and weaker Chinese demand after a devastating earthquake.