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December 8, 2009

Flextronics expands EMS relationship with Lenovo

Its Sarvar facility to manufacture commercial desktop, server and workstation products for Lenovo

By CBR Staff Writer

Flextronics has signed an agreement with Lenovo to expand the scope of its existing Electronics Manufacturing Services (EMS) relationship.

Flextronics currently provides mechanical and system services to Lenovo in China and manufacturing services in Brazil. As part of the arrangement, Flextronics enlarges its geographic service area for Lenovo products to include Europe and increases the number of EMS services it offers for Lenovo.

Flextronics’ Sarvar facility will manufacture computing products for Lenovo including commercial desktop, server and workstation products. It will also expand Flextronics’ capabilities in Hungary for computing products within Europe. Terms of the deal were not disclosed.

Sean Burke, president of Flextronics Computing , said: “We are very excited about this Lenovo business expansion and believe our global ODM and EMS capability is the competitive advantage enabling this kind of strategic customer growth.

“This deal also allows Lenovo to take advantage of our high-volume PC manufacturing facility located in a competitively positioned region within Europe that offers superior logistics capabilities. Overall, it is the kind of expanded partnership that speaks to the significant competitive offering we provide to world leading PC companies such as Lenovo.

Flextronics Hungary was selected for the production location of this business based on its suitable physical market location and proximity to its Centre of Excellence for computing in Zala, Hungary.

Gerry Smith, senior vice president of global supply chain at Lenovo, said:The new manufacturing facility in Hungary represents another important step in our strategic partnership with Flextronics. Our further collaboration in Europe allows us to centralise our activities and optimise our supply chain, while providing superior service to our European customers.

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