PC manufacturer Lenovo will build a huge manufacturing and distribution facility in Poland as it gears up for a major sales push in European markets.
The more than $20 million plant, which will cover more than 300,000 square feet, will be built in the city of Legnica, which is the Lower Silesia region of Poland.
Some 1,000 people will be hired to operate the facility, Lenovo said in a statement issued early Tuesday morning. It will have a production capacity of two million PCs a year.
”Our new plant in Poland is an example of Lenovo’s worldsourcing strategy in action,” said Gerry Smith, senior vice president of Global Supply Chain for Lenovo. “In a world with just one time zone, ‘now,’ Lenovo must source materials, assemble managerial and technical talent, and concentrate logistics, infrastructure, and production wherever they are best available – in this case, Poland. This new plant brings our manufacturing operations closer to our European customers, enabling Lenovo to better optimize its supply chain, enhance its competitiveness and serve our expanding customer base in this region.”
Worldsourcing is a term coined by Lenovo Chief Executive William Amelio, who has implemented a strategy of spreading Lenovo facilities and personnel around the world. For example, Lenovo’s marketing operation is now located in India.
The plant in Poland is the fifth announced by Lenovo this year. A distribution center is being built in the Triad. Other plants are also being added in China, India and Mexico. Lenovo is also building a third structure at its global headquarters in Morrisville.
Lenovo has been planning an expansion in Europe for some time. The company, which employs most of its personnel in China, suffered a setback this fall when rival Gateway exercised a right of first refusal to purchase Europe-based Packard Bell. Lenovo had been in negotiations to by Packard Bell, eyeing not only its manufacturing capacity but also its distribution channels and customer base. Gateway announced plans to buy Packard Bell after PC maker Acer, which is based in Taiwan, said it would buy Gateway.
The Lenovo plant in Poland will handle support for customers in Europe as well as the Middle East and Africa.
”Selecting Poland as the location for Lenovo’s European manufacturing facility – featuring Lenovo’s best-in-breed manufacturing processes – is a significant step in demonstrating our increasing presence in Europe and our strategy to grow in this market,” said Milko van Duijl, president of Lenovo for Europe, Middle East and Africa.
“To develop a state-of-the-art facility in Europe focused on improving the customer experience, Lenovo is leveraging its ‘worldsourcing strategy,’ that enables us to recruit the best local talent and international management where they are,” he added.