Lenovo moves enterprise product manufacturing to Europe – here’s how it will benefit partners and customers

Lenovo has announced that it will begin manufacturing enterprise products for EMEA customers in Europe, including its full range of storage and networking products for data centre environments.

This move to manufacture enterprise products in Europe is good news for Lenovo’s EMEA partners and customers. They will benefit from faster delivery times and more flexibility to meet their needs when manufacturing partner, Flex, begins production of Lenovo’s x86 server products in Hungary.

The move will also 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, said the firm.

The decision to move manufacturing to Europe was based on the benefits arising from establishing production closer to Lenovo’s core customer and partner base.

Manufacturing in the European Union will enable an improvement of up to five days on delivery times to customers (depending on the country) and lower operation costs (eg reduced freight costs) that can be passed on to customers and partners.

EMEA enterprise customers will also receive products faster and more efficiently, but with no loss in quality, promises Lenovo.

The move also reinforces Lenovo’s 3-pillar strategy for enterprise computing:
– Best Total Value – balancing price leadership with latest innovation
– Open and Flexible – broad partnerships with focus on easy integration
– Easy to do business with – tailored, fast and responsive customer engagement

“Transferring production to Europe is a strategic move for us which will create tangible benefits for our customers,” said Wilfredo Sotolongo, EMEA vice president and general manager Data Center Group, Lenovo.

“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.”

Production will begin in Summer 2016 and will complement the existing Flex production of the ThinkServer product line as well as a number of other products.

“We take great pride in the strategic partnership we have built with Lenovo over the years, producing a wide range of products,” said Janos Lang, Hungary vice president of operations, Flex.

“We are thrilled to expand our partnership to include manufacturing Lenovo’s enterprise products in Hungary for its EMEA customers.”

Production of x86 servers for EMEA customers will still continue in China allowing channel partners to enjoy further cost benefits by using ocean freight.

Lenovo has also announced the launch of Lenovo Capital and Incubator Group (LCIG) to integrate its global resources, enhance its internet services and intelligence ecosystem via investments, and foster innovation within and outside of Lenovo.

LCIG will invest in core-technology and internet-related areas globally, investing $500 million initially in projects through the Lenovo Capital Phase II Investment Fund, which will focus on areas including cloud computing, big data, artificial intelligence, robotic and Internet services.

“Technology breakthroughs are changing the way all of us live today,” said He Zhiqiang, CTO at Lenovo. “With our long-industry history and experience of driving and developing core innovations, we’re well-prepared to shape the future of game-changing technologies through funding and nurturing start-ups and bringing incubator projects to market.”

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