PC maker Lenovo has announced that it will start manufacturing enterprise products in Europe to serve its customers in Europe, the Middle East and Africa (EMEA) region.
The products to be manufactured in Europe include x86 servers, and the full range of storage and networking products for the data center environment.
The move is expected to reduce delivery time and offer more flexibility for its EMEA customers to meet their requirements, with Lenovo’s manufacturing partner Flex starting production of x86 server products in Hungary.
"The move to manufacture enterprise products in Europe will allow Lenovo to provide the best possible service to its EMEA customer and partner base, whilst reinforcing its commitment to lead the enterprise computing space," the company said in a statement.
The production of the enterprise products will commence in Summer 2016, complementing the existing Flex production of the ThinkServer product line as well as other products.
A manufacturing plant of Flex, dedicated to Lenovo, will make the full x86 range, including system assembly, the complete range of storage and networking options, and fully integrated racks in order-to-configure custom-build systems.
Lenovo data center group EMEA vice president and general manager Wilfredo Sotolongo said: "Transferring production to Europe is a strategic move for us which will create tangible benefits for our customers.
"Our customers have been very positive about our decision to manufacture in Hungary. We believe that this will only enhance our capabilities in the enterprise market as we will be able to offer an even greater level of service to our EMEA customers."
The strategic partnership between Lenovo and Flex has been in place of the past six years. Flex manufactures a range of products for Lenovo, including PCs, phones, ThinkServers and tablet repairs.
Flex’s facility at the Sarvar site in Hungary has already shipped five million PCs for Lenovo in EMEA region.
"The relationship with Flex is a core part of Lenovo’s strategy for a balance of owned / in-house manufacturing alongside third party contract manufacturing, ensuring the company can reap the best of outside innovation to drive improvements in manufacturing," Lenovo added.
A decision to shift manufacturing to Europe was reached by taking into account the advantages resulting from setting up production facilities closer to Lenovo’s core customer and partner base.
Starting production in Europe is expected to cut delivery time by up to five days for customers depending on the country in EMEA region. The lower operational expenses will also enable the company to pass the benefits to customers and partners.
However, the company will continue to produce x86 servers in China for EMEA customers, enabling its channel partners to reap further cost benefits by using ocean freight
Last week, Lenovo Lenovo said that it has set up a $500m investment fund to support technology start-ups. The fund aims to invest in artificial intelligence, cloud computing, big data, robotics, Internet Plus and other emerging sectors.
Lenovo will help startups in industrial and system design, human resources and distribution channel apart from providing financial support.
The company has invested $100m in over 30 firms in areas such as security, smart home devices and mobile games.
