Business 29 September 2020, 4:35pm

World's biggest PC maker to build first European factory in Hungary

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Lenovo Group Limited, the world's largest PC maker is to build its first European manufacturing unit in Hungary and production could begin at the new facility as soon as early 2021, Hungary's Minister of Foreign Affairs and Trade announced at a press conference in Budapest on Tuesday.

Péter Szijjártó said the Chinese company's new computer production plant will be built in a HUF 8.2 billion investment project at Üllő in Pest county.

The project is to create 1,000 new jobs in several stages and bring cutting-edge technology to Hungary, in exchange for which the government is to grant it a HUF 2 billion subsidy, the minister added.

Lenovo is an investment holding company principally engaged in personal computers and related businesses. It is one of the world's leading computer manufacturers. In terms of the volume of personal computers sold, Lenovo was the second-largest player worldwide in the second quarter of 2020. According to IDC data, 24% of all PCs sold were Lenovo. The company alsp produces laptops, tablets, mobile phones, servers, data storages and smart televisions.

In November 2016, Lenovo, in a strategic partnership with Flex, opened a plant in Hungary’s Sárvár. The unit was specialized in the manufacturing of x86 servers and was also responsible for assembling systems, such as integrated racks ordered for customized usage.

Cover photo by Tomohiro Ohsumi/Bloomberg via Getty Images