Lenovo has opened its first own factory in Europe. Located in Ullo, Hungary, the facility will focus primarily on the production of server infrastructure, storage systems and workstations for high-end PCs used by customers throughout Europe, the Middle East and Africa. The investment extends Lenovo’s international production operations and represents very significant economic potential for the private and public sectors in Hungary, given the increase in production capacity, enormous possibilities for collaboration with local vendors and the creation of new jobs. The factory already employs more than 1,000 full-time workers in various engineering, management and operations positions, and the workforce continues to grow as the plant progresses towards full capacity.
The excellent infrastructure, skilled workforce and central location in Europe make Hungary the natural choice for the construction of this first Lenovo in-house manufacturing facility in Europe. In addition, part of Lenovo’s investment has been supported by incentives from the local government through the Hungarian Investment Promotion Agency (HIPA).
François Bornibus, Senior Vice President and President, Lenovo EMEA, explained, “With the official opening of our factory in Hungary, we have reached a very significant milestone in optimizing and evolving our global manufacturing network. Hungary’s seamlessly connected location puts us much closer to our European customers, allowing us to support and respond to their needs, while remaining at the forefront of innovation As our business continues to grow around the world, this fantastic new plant will play a key role in our plans to ensure future success and will enable us to deliver smart technology across Europe in a more sustainable, faster and more efficient way.
The new facilities have two three-storey buildings that occupy an area of almost 50,000 m2 ; one of Lenovo’s largest production plants. The manufacturing line is capable of producing more than 1,000 servers and 4,000 workstations per day, all built to specific customer requirements. The plant has state-of-the-art automation capabilities, including a state-of-the-art building management system, operating in the production area and logistics area, to monitor temperature and humidity conditions, as well as DIMM robotic labeling and more. active. All this allows Lenovo to ensure optimal quality control of its products.
The new, custom-built facility features solar panels with a capacity of 0.5 megawatts, which will produce enough electricity to power the equivalent of a small town. Local manufacturing of devices also dramatically reduces their transportation, opening up a range of more efficient and sustainable distribution options. Combined with innovative manufacturing processes such as Lenovo’s proprietary low-temperature welding, these advances will enable the company to meet its science-based climate goals.
The new Hungarian plant is part of Lenovo’s global supply chain and manufacturing strategy to serve customers in 180 markets through more than 35 facilities around the world, including Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico and the US Lenovo has been widely recognized for its global hybrid manufacturing model that includes a mix of in-house and outsourced production. This key element of the company’s competitive advantage provides greater efficiency and control over product development and supply chain operations, allowing it to respond to customer needs much more effectively.
In May 2022, after moving up seven places, Lenovo ranked ninth on the Gartner Global Supply Chains 2022 list. This recognition supports Lenovo’s leadership as an organization and center of operational excellence in the global supply chain community. In addition to creating new jobs in and around Ullo, Lenovo will continue its commitment to supporting local communities through philanthropic activities, including donating technology to schools and charities.