Europeans will get their servers cheaper and deliveries - faster
Chinese computing giant Lenovo has brought more of its manufacturing capacity to Europe. The company announced it will make products like servers, storage arrays and switches in Hungary, after extending its relationship with Flex, an Original Design Manufacturer (ODM) that already produces its desktops and workstations.
Lenovo is the world’s largest PC vendor, and a leader in server and networking equipment, having acquired IBM’s x86 server business in 2014.
The company says new manufacturing facilities will result in faster deliveries across Europe, lower prices, and will offer customers the ability to customize their kit.
Lenovo ThinkServer RS140
Flex, also known as Flextronics, designs and builds technology products for some of the world’s largest brands, with 100 facilities across 30 countries. It is the world’s second largest ODM by revenue, following Taiwan’s Foxconn.
The company has been making hardware for Lenovo for the past six years, including the ThinkServer product line.
Starting this summer, a dedicated facility in Sarvar, Western Hungary, will produce the full x86 server line-up, including system assembly, the complete range of storage and networking options, and fully integrated racks.
Lenovo says the decision to move manufacturing to Europe was based on the benefits arising from establishing production closer to its core customer and partner base. Making hardware in the EU will shave up to five days off delivery times and enable the company to save on shipping costs - and it promises that the savings will be passed on to customers.
“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 for the Data Center 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.”
Production of x86 servers for EMEA customers will also continue in China.