Lenovo (HKSE: 992) (ADR: LNVGY) has today officially opened the doors to its first in-house manufacturing facility in Europe. Based in Ullo, Hungary, the factory focuses primarily on building server infrastructure, storage systems and high-end PC workstations used by customers throughout the Europe, Middle East, and Africa region.
Extending Lenovo’s international manufacturing operations, the investment represents significant economic potential for both the private and public sectors in Hungary, with increased production capacity, greater potential for collaboration with local vendors, and the creation of new job openings. The site already employs over 1,000 full-time staff in a variety of engineering, management & operational roles, with numbers continuing to increase as the facility moves towards full capacity.
Strong infrastructure, skilled labor and a location at the center of Europe made Hungary the natural location for Lenovo’s first European in-house manufacturing facility. In addition, part of Lenovo’s investment has been supported with local government incentives through the Hungarian Investment Promotion Agency (HIPA).
Francois Bornibus, Senior Vice President and EMEA President, at Lenovo, commented: “With our manufacturing facility in Hungary officially open, we’ve reached a profound milestone in our global manufacturing network optimization and evolution. Hungary’s well-connected location puts us much closer to our European customers so that we can fulfil and sustain their needs while remaining at the forefront of innovation. As our business continues to grow around the world, this incredible new facility will play a key role in our plans to ensure future success and bring smarter technology for all to Europe more sustainably, quickly and efficiently.”
Róbert Ésik, CEO of the Hungarian Investment Promotion Agency (HIPA), added: “We are delighted that Lenovo, an industry leader with a long-established history in global manufacturing, has chosen to cooperate with us and locate its new facility in Hungary. With the site now officially open, we expect to see new collaboration opportunities for local suppliers contribute towards Hungary’s prosperous economic environment.”
Covering almost 50,000 square meters across two buildings and three floors, the new site is one of Lenovo’s largest manufacturing facilities. The production line can produce more than 1,000 servers and 4,000 workstations a day – each one built specifically to customer requirements. Innovative automation capabilities are equipped throughout, including a first-class building management system operating on the shop floor and logistics area to monitor temperature, humidity, asset conditions and DIMM robotic labeling. This enables Lenovo to maintain optimal quality control of its products.
The new purpose- built building has been fitted with solar panels with a capacity of 0.5 megawatts – enough energy to power the equivalent of a small village. Building devices locally also dramatically reduces the freight miles these products incur, providing more efficient and sustainable transportation options. This combined with innovative manufacturing processes, such as Lenovo’s patented low-temperature solder process, will help Lenovo achieve its science-based climate goals.
The Hungary facility is part of Lenovo’s global manufacturing and supply chain strategy that serves customers in 180 markets from 35+ manufacturing sites around the world – including Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico and the USA. Lenovo is widely recognized for its global hybrid manufacturing model that includes a mix of both in-house and contract manufacturing. A key source of competitive advantage for the company, it provides greater efficiency and control over product development and supply chain operations, enabling customer needs to be responded to more effectively. In May 2022, Lenovo jumped seven places in a year, and is now ranked #9 in the Gartner Global Supply Chain Top 25 for 2022. The recognition highlights Lenovo’s leadership as a purpose-driven organization and operational center of excellence in the global supply chain community.
In addition to creating new job opportunities in and around Ullo, Lenovo continues its commitment to support the local community through philanthropic activities such as technology donations for local schools and charities.