China's Lenovo opens first European in-house manufacturing facility in Hungary

BUDAPEST, June 14, (Xinhua) -- Chinese computer giant Lenovo opened the doors to its first European in-house manufacturing facility in Hungary on Tuesday.

Based in Ullo, near Budapest, the factory will mainly build server infrastructure, storage systems and high-end PC workstations used by customers throughout Europe, the Middle East, and even Africa.

The new factory will create strong economic potential for both the private and public sectors in Hungary, Lenovo said.

The site already employs over 1,000 full-time staff, with numbers continuing to increase as the facility moves towards full capacity.

Francois Bornibus, Senior Vice President and EMEA President at Lenovo, said: "Hungary's well-connected location puts us much closer to our European customers so that we can fulfill and sustain their needs while remaining at the forefront of innovation."

Bornibus said the new facility will play a key role in bringing smarter technology to Europe more sustainably, quickly and efficiently.

Lenovo's investment has been supported by the Hungarian Investment Promotion Agency (HIPA).

"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 contributing towards Hungary's prosperous economic environment," said Robert Esik, CEO of HIPA.

Covering close to 50,000 square meters, across two buildings and three floors, the new site is one of Lenovo's largest manufacturing facilities. It can produce more than 1,000 servers and 4,000 workstations per day.

The new building has been fitted with solar panels with a capacity of 0.5 megawatts - enough energy to power a small village.

Building devices locally also dramatically reduces freight miles, providing more sustainable transportation options.

Solar power combined with innovative manufacturing processes will help Lenovo achieve its climate goals, it said.

The Hungarian facility is part of Lenovo's global manufacturing and supply chain strategy, serving customers in 180 markets from over 35 manufacturing sites around the world - including sites in 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.

In-house manufacturing is a key source of competitive advantage for the company, as it provides greater efficiency and control over product development and supply chain operations.

In addition to creating new job opportunities in and around Ullo, Lenovo is supporting the local community through philanthropic activities such as technology donations to local schools and charities.

Lenovo is US$ 70 billion revenue global technology powerhouse, ranked at number 159 in the Fortune Global 500. It employs 75,000 people around the world and serves millions of customers every day.