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China economy Hungary Péter Szijjártó Technology News

Tech giant Lenovo builds first European factory in Hungary

An investment of 8.2 billion forints is expected to create 1,000 jobs

editor: REMIX NEWS
author: Origo/MTI
via: Origo

Chinese multinational technology giant Lenovo is building its first European production facility in Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó announced.

“Bringing the factory to Hungary will also improve the export performance of the country since the facility will have an export rate of over 90 percent, meaning that the more successful Lenovo is in Hungary, the more it will contribute to Hungarian exports,” Szijjártó said at the announcement of the investment.

The factory will be built at a cost of 8.2 billion forints (€22.56 million) in Üllő, just south of the capital Budapest, and will create some 1,000 jobs. The government will contribute 2 billion forints to the costs.

“This is an important milestone in the optimization and development of our global manufacturing capacity. It is a great pleasure for us that based on our existing presence in Hungary, we can now get closer to European consumers with a new production plant in Hungary,” Guan Wei, vice president of Lenovo International Supply Chain, said at the announcement. “Lenovo’s international success is based on a global manufacturing presence and operational excellence, so we look forward to contributing to further growth with our Hungarian facility.”

“Hungary’s central location in Europe, and thus its proximity to many commercial hubs, ensures that we fulfill our customers’ orders even faster and are even more efficiently in terms of delivery methods and delivery times. As our company continues to grow worldwide, the new facility will play a key role in how we meet and serve the needs of our European customers and how we demonstrate to them our world-class manufacturing capabilities,” said Anita Lukita, Managing Director of Lenovo Hungary.

Last year, the Lenovo Group Ltd posted a net profit of $597 million (€508 million) on sales of $51.04 billion.

Title image: Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó.