(Yicai Global) June 15 — Chinese personal computer manufacturer Lenovo Group announced that it has terminated the construction of its first factory in Europe.
The plant, which covers an area of 50,000 square meters, was completed yesterday, the Beijing-based company said on its official WeChat account yesterday. It will mainly produce high-end PC workstations, server infrastructures, and storage systems, and will have a daily capacity of 1,000 servers and 4,000 PC workstations.
Lenovo announced in 2020 to spend more than EUR20 million (USD20.9 million) to build a factory to meet the needs of the European market in the town of Ollo, near Hungary’s capital city of Budapest. The plant is expected to create about 1,000 local jobs, Xinhua reported at the time.
As the company’s business continues to grow globally, the Hungarian factory will become the cornerstone of Lenovo’s development in the European market, said Guan Wei, senior vice president of the world’s largest PC maker’s global supply chain. The factory will better serve European customers, show clients the firm’s manufacturing capabilities, and enhance the global influence of Chinese brands, he added.
The Europe, Middle East and Africa region accounts for nearly 25 percent of Lenovo’s business. Revenue from EMEA jumped 15 percent to USD18.3 billion in the fiscal year ended March 31 from a year earlier, per its latest annual report. Total revenue rose 17.9 percent to USD71.6 billion.
With 81.9 million PC shipments and a 23.5 percent share of the global market, Lenovo continued to rank first worldwide last year, according to market research firm IDC.
Editor: Futura Costaglione