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Lenovo to manufacture servers in Europe

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Lenovo has announced that it will begin manufacturing enterprise products for EMEA customers in Europe – including x86 servers and the full range of storage and networking products for the data centre environment.
EMEA customers and partners 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 to manufacture enterprise products in Europe will allow Lenovo to provide the best possible service to its EMEA customer and partner base.
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.
A Flex facility in Hungary, dedicated to Lenovo, will produce 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.
Flex has been a strategic partner to Lenovo for six years and is already involved in the production of a range of products, including PCs, phones, ThinkServers and tablet repairs.
In fact the Sarvar site in Hungary has manufactured and shipped 5-million PCs for Lenovo in EMEA.
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.
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 (such as reduced freight costs) that can be passed on to customers and partners.
Production of x86 servers for EMEA customers will still continue in China allowing channel partners to enjoy further cost benefits by using ocean freight.
“Transferring production to Europe is a strategic move for us which will create tangible benefits for our customers,” says Wilfredo Sotolongo, EMEA vice-president and GM: Data Centre Group at 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.”
Janos Lang, Hungary vice-president of operations at Flex, adds: “We take great pride in the strategic partnership we have built with Lenovo over the years, producing a wide range of products. We are thrilled to expand our partnership to include manufacturing Lenovo’s enterprise products in Hungary for its EMEA customers.”