The Baddi plant is expected to be operational in the third fiscal quarter of 2007, while the Monterrey facility will come online by mid-2008. The new plants will enable Lenovo to significantly increase global production capacity of Think-branded and Lenovo-branded PCs.
The 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 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.
The planned 260,000 square foot (24,155 square meters) Monterrey facility 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 (12,077 square meters), and employ approximately 350 people.
