Lenovo to make enterprise products for its Europe customers in Hungary
Lenovo finds advantages in manufacturing its enterprise application computer system products in Europe for its customers in Europe. Lenovo said it will begin manufacturing enterprise products for EMEA customers in Europe, the products including x86 servers, and the full range of storage and networking products for the data center environment.
The advantages to its customers in EMEA region includes faster delivery times and flexibility in product offerings. Flextronics, the manufacturing partner of Lenovo begins production of Lenovo’s x86 server products in Hungary.
Lenovo said the production will begin in Summer 2016 and will complement the existing Flextronics production of the ThinkServer product line as well as a number of other products.
Flextronics facility in Hungary which is exclusively for Lenovo to 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.
Flextronics' Sarvar site in Hungary has already manufactured and shipped its 5th million PC for Lenovo in EMEA.
Lenovo says "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 (eg reduced freight costs) that can be passed on to customers and partners."
However Lenovo will continue production of x86 servers for EMEA customers in China allowing channel partners to enjoy further cost benefits by using ocean freight.
Is this a Industry 4.0 trend? Industry 4.0 based smart manufacturing using what's called Smart factory takes less manpower but deep domain expertise people to control manufacturing process. This concept brings manufacturing back to developed world. Cheap human labour is not a great advantage factor in smart factories.
Author: Srinivasa Reddy N