Lenovo, the world’s No. 3 ranked personal computer manufacturer, is adding to its capacity by building new plants in Mexico and India.
More growth is on the way, too. A Lenovo executive said the company is “actively scouting locations” for a production facility in Central and Eastern Europe. An announcement is expected soon.
Total investment of the two announced plants is $30 million. The facilities also will be used for distribution, customer support, configuration and other services.
Lenovo recently disclosed plans to build a $10 million distribution center in the Triad and an additional facility in Shanghai.
The facility in India reflects Lenovo’s growing attention to that country’s booming technology sector. Lenovo announced plans last week to consolidate marketing operations in Bangalore, which is known as India’s Silicon Valley.
The decision to expand production capacity reflects Lenovo’s growing sales, which increased more than 22 percent in the second quarter of this year to nearly 5 million units. Most of Lenovo’s manufacturing is done in China. It also has a plant in Pondicherry, India.
Lenovo has about 8 percent of the world PC market share, according to analysis firms Gartner and IDC.
The Mexico plant will be built in Monterrey and should open by the middle of next year, Lenovo said.
The Indian facility will be built in Baddi, Himachal Pradesh. It is scheduled to open in the third quarter of this year, Lenovo added. Baddi is a major center for India’s pharmaceutical industry. Himachal Pradesh is a state in northern India.
“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 Smith, who directs Lenovo’s supply chain operations.
The Mexico facility will cover 260,000 square feet, have 750 workers, and be able to product 5 million PCs a year. PCs built there will be for customers in the Americas.
The India plant will have a capacity of 2 million PCs per year, will cover 130,000 square feet, and employ some 350 people.