Lenovo has officially opened the doors of its first Production Unit in Europe. Based in Ullo, Hungary, the plant mainly focuses on the construction of server infrastructure, storage systems and high-tech workstations, for customers throughout Europe, the Middle East and Africa.
Expanding Lenovo’s international manufacturing activity, this investment represents significant financial opportunities, both for the private and public sectors in Hungary, with increased production capacity, greater opportunities to work with local suppliers and create new jobs. The Unit already employs over 1,000 full-time staff, in various engineering, management and operating roles, while the number is constantly increasing as the Unit moves towards its full operation.
The infrastructure capabilities, the skilled workforce and the location in the center of Europe, made Hungary the ideal location for the construction of Lenovo’s first European Production Unit. In addition, part of Lenovo’s investment has been supported by the local government through the Hungarian Investment Promotion Agency (HIPA).
Francois Bornibus, Senior Vice President and EMEA President of Lenovo, commented: “The official launch of our new Production Unit in Hungary is a unique milestone in the optimization and development of our global production network. The location of Hungary brings us much more close to our customers in Europe so that we can meet their needs more quickly, remaining at the forefront of innovation.As Lenovo continues to grow around the world, this amazing new Production Unit will play a central role in future success “and our vision to bring smarter technology to everyone in Europe. Sustainable, fast and efficient.”
Róbert iksik, Chief Executive Officer of the Hungarian Investment Promotion Agency (HIPA), added: “With the Unit now officially operational, we expect to see new cooperation opportunities for local suppliers, which will contribute to a better economic environment in Hungary.”
Covering almost 50,000 square meters in two buildings and three floors, the new Production Unit is one of Lenovo’s largest production facilities. The production line can produce more than 1,000 servers and 4,000 workstations per day – each tailored to the specific requirements of each client. The Unit is equipped with innovative automation capabilities, including a building management system operating in the production area and logistics area to monitor temperature, humidity and robotic DIMM marking. This enables Lenovo to maintain optimal quality control of its products.
The new, specially constructed building is equipped with solar panels with a capacity of 0.5 megawatts – energy that is equivalent to the electricity of a small village. At the same time, manufacturing devices locally dramatically reduces the miles traveled by these products, providing more efficient and sustainable transportation options. This, combined with innovative manufacturing processes, such as Lenovo’s patented low-temperature welding process, will help Lenovo achieve its climate change goals.
The Production Unit in Hungary is part of Lenovo’s global manufacturing strategy and supply chain serving customers in 180 markets from 35+ manufacturing locations worldwide – including Argentina, Brazil, China, Germany, Hungary, India , Japan, Mexico and the USA. Lenovo is widely recognized for its global hybrid production model that includes in-house construction, combined with partner construction. This strategy, which is a key source of competitive advantage for the company, provides greater efficiency and control over product development and supply chain operations, enabling faster response to customer needs.
In May 2022, Lenovo finished ninth in the Gartner Global Supply Chain Top 25 for 2022, a jump of seven places in one year. This recognition brings Lenovo to the forefront as a leader in the global supply chain.
In addition to creating new jobs in Ullo, Lenovo is steadily continuing its commitment to supporting the local community through charitable activities, such as technology donations to local schools and charities.
Source: Capital
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