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Lenovo to set up manufacturing plants in Mexico, India

Posted: 30 Jul 2007 ?? ?Print Version ?Bookmark and Share

Keywords:manufacturing plants? product assembly? production capacity?

Lenovo announced it will open two new manufacturing plants and fulfillment operations centers in Monterrey, Mexico, and Baddi, Himachal Pradesh, India, which will support product assembly and configuration, distribution services and logistics.

The Baddi plant is expected to be operational in Q3 2007, while the Monterrey facility will come online by mid-2008. The new plants will increase Lenovo's global production capacity for Think-branded and Lenovo-branded PCs.

The 24,155m? Monterrey facility will have a production capacity of 5 million PCs, employing approximately 750 people. The plant will supply PCs to customers throughout the Americas and represents Lenovo's largest manufacturing investment to date outside of China.

First to go online with some limited production capacity, the Baddi plant will be available as soon as September 2007 to serve the growing India market. With an annual capacity of 2 million units, the plant initially will have an area of 12,077m?, and employ approximately 350 people.

Total combined economic value of these investments is estimated at more than $30 million, including the cost of construction, tooling, salaries, taxes and additional contributions to the local, regional and national economies.

"These plants are an investment in Lenovo's future that leverages our world-class manufacturing base in China and extends it globally to satisfy demand for Lenovo products in vital economic opportunity areas," said Gerry P. Smith, senior VP of Lenovo's global supply chain. "This announcement, together with the new facilities we recently announced in Shanghai, China, and North Carolina, will help us to improve our competitiveness and cost structure as well as accelerate our ability to reach new markets and buyer segments. We are also actively scouting locations in Central and Eastern Europe and anticipate shortly announcing a similar type of installation mirroring what we are reporting today."

Lenovo currently has manufacturing facilities in Beijing, Huiyang, Shanghai and Shenzhen, China, and Pondicherry, India, and a new fulfillment center in Whitsett, North Carolina, announced last month.

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