Lenovo teams up with Flextronics for expanded PC capability in Europe
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MORRISVILLE, N.C. – Lenovo, the world’s No. 4 PC maker, is expanding its production capabilities in Europe even as it scales down on operations in India.
The Morrisville-based firm, which maintains most of its operations in China, recently struck a deal with outsourcing firm Flextronics to manufacture PCs at a plant in Sarvar, Hungary.
Lenovo, which increased PC shipments last quarter by 42 percent over the same time period in 2008, already works with Flextronics in China and in Brazil. Lenovo has been striving to grow its market share in Europe.
The Hungary plant will be used to build desktops, servers and workstations.
Meanwhile, Lenovo is closing a manufacturing facility in India, according to the India Times.
Lenovo shut down its facility in Baddi but still operates a plant in Puducherry.
Lenovo grew its market share in India to 7.3 percent in the third quarter of 2009 from 4.7 percent in the first quarter, according to the India newspaper.
The Puducherry plant has the capacity to kmake 3 million PCs a year, the newspaper said.
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