Lenovo To Open New Plants In Mexico, India

Will increase global capacity of the Think brand of Lenovo's PCs

Lenovo announced July 26 it will open two new, state-of-the-art manufacturing plants and fulfillment operations centers in Monterrey, Mexico, and Baddi, Himachal Pradesh, India. Each of the facilities will support regional customer requirements including product assembly and configuration, distribution services and logistics to meet the need for Lenovo products in these vital markets.

The Monterrey facility, which will be 260,000 square feet, will have a production capacity of five million PCs when it goes on-stream in mid-2008, 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.

The Baddi plant will be the first to go online, with some limited production capacity available as soon as September 2007 to serve the growing India market. With an annual capacity of two million units, the plant initially will measure 130,000 square feet, and employ 350 people.

The new plants will enable Lenovo to significantly increase global production capacity of Think-branded and Lenovo-branded PCs.

"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 vice president 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," Smith said.

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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