Image Source: Visual China
BEIJING, June 14 (TMTPOST) — Chinese computer maker Lenovo Group announced on Tuesday the completion of the construction of its manufacturing plant in Hungary.
Lenovo’s new plant is located in Ullo near Budapest, the capital of the eastern European country. The plant is Lenovo’s first production base in Europe and an important part of Lenovo Group’s Belt Road Initiative strategy.
It is said that the plant in Ullo will be tasked with making high-end PC workstations, server infrastructure and storage system that will be mainly sold to customers in Europe, the Middle East and Africa. Covering an area of 50,000 square meters, the Ullo plant is one of the biggest plants for Lenovo outside of China.
Lenovo said that the plant can achieve a daily production capacity of over a thousand servers and 4,000 workstations. The plant also supports the production of customized workstations.
Lenovo decided to build the plant in Hungary thanks to the country’s convenient location. The company believes that Hungary is located in the center of Europe and serves as a transportation node, which allows the company to quickly respond to the market demand in Europe, the Middle East and Africa. Localized production can also help the company reduce costs associated with logistics. China and Hungary’s growing trade ties also laid a foundation for Lenovo" investment.
To date, nine cities in China, including Changsha, Xi’an and Chengdu, have trains going to Europe, which also transport goods from Hungary to other countries in Europe. It is apparent that Hungary is becoming increasingly important as a transportation node in Europe.
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During the pandemic, export volume transported by the trains from China to Europe has been impressive, helping to achieve stable growth in export and serving as an important pillar for the international supply chain. In 2021, Lenovo transported 3,200 export containers and a shipment volume of 7.2 million units to countries along the Belt and Road Initiative route.
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