Flextronics Expands Relationship With Lenovo

At an event held in Sarvar, Hungary, Flextronics announced that it has signed an agreement with Lenovo to expand the scope of its existing electronics manufacturing services (EMS) relationship. Flextronics currently provides mechanical and system solutions to Lenovo in China as well as manufacturing services in Brazil. As part of
the arrangement, Flextronics enlarges its geographic service area for Lenovo products to include Europe and increases the number of EMS services it delivers for Lenovo. Flextronics' Sarvar facility will manufacture computing products for Lenovo including commercial desktop, server and workstation products. It will also expand Flextronics' capabilities in Hungary, a strategic area for computing products within Europe. Terms of the deal were not disclosed.

"We are very excited about this Lenovo business expansion and believe our global ODM and EMS capability is the competitive advantage enabling this kind of strategic customer growth," said Sean Burke, President of Flextronics Computing. "This deal also allows Lenovo to take advantage of our high volume PC manufacturing facility located in a competitively positioned region within Europe that offers superior logistics capabilities. Overall, it is the kind of expanded partnership that speaks to the significant competitive offering we provide to world leading PC companies such as Lenovo."

"The new manufacturing facility in Hungary represents another important step in our strategic partnership with Flextronics. Our further collaboration in Europe allows us to centralize our activities and optimize our supply chain, while providing superior service to our European customers," said Gerry Smith, Senior Vice President, Lenovo Global Supply Chain.

Flextronics' commitment to offer world class and competitive solutions to its customers is exemplified in this Lenovo deal. For example, Flextronics customized its services to Lenovo to include a vendor managed inventory (VMI) hub managed by Flextronics Global Services that will be housed on-site with manufacturing services and will feed production lines on a real-time basis. This is a service not typically offered by EMS providers, but rather is added via third-party basis from a remote location.

Flextronics Hungary was selected for the production location of this business based on its ideal physical market location and proximity to Flextronics' Centre of Excellence for computing in Zala, Hungary.

www.flextronics.com