Lenovo, which has sold smartphones in batches of thousands in India through online “flash” sales, is now manufacturing smartphones in that country. The news comes a week after Lenovo disclosed a big drop in smartphone sales and layoffs that included 500 jobs at its Motorola operation in Chicago.

Both Lenovo and Motorola brand phones will be made at a plant in the city of Chennai, company officials said.

Lenovo is contracting with Flex to make the phones.

According to Lenovo, the facility will have the capacity to produce 6 million phones annually.

Lenovo also has a PC production plant in India.

According to Bloomberg news, India is encouraging domestic production of phones through higher taxes on foreign-made goods.

The Economic Times in India reported that the smartphone plant will have 1,500 workers and will be the only facility making both Motorola and Lenovo phones.

Lenovo acquired Motorola from Google in 2014 for nearly $3 billion.