Lenovo to produce millions of computer devices in Saudi Arabia by 2026
Lenovo, the Chinese tech giant, has
announced plans to produce millions of computer devices in Saudi Arabia by
2026, following the completion of a $2 billion agreement with Alat, a
subsidiary of the Public Investment Fund (PIF).
First revealed in May 2024, the
partnership has now received full approval from both shareholders and
regulators, paving the way for Lenovo to establish a regional headquarters and
a manufacturing facility in Saudi Arabia.
The collaboration is a significant
move in line with Saudi Arabia’s Vision 2030 goals, which focus on economic
diversification, innovation, and job creation, according to a company press
release.
The new facility will manufacture millions
of PCs and servers annually, leveraging local research and development teams to
produce entirely "Saudi Made" products. The production is expected to
commence by 2026.
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Yuanqing Yang, Chairman and CEO of
Lenovo, expressed enthusiasm about the partnership, stating, “Through this
powerful strategic collaboration and investment, Lenovo will have significant
resources and financial flexibility to accelerate our transformation and grow
our business by capitalizing on the incredible growth momentum in Saudi
Arabia.”
He continued, “We are excited to
have Alat as our long-term strategic partner and are confident that our
world-class supply chain, technology, and manufacturing capabilities will
benefit Saudi Arabia as it drives its Vision 2030 goals of economic
diversification, industrial development, innovation, and job creation.”
Amit Midha, CEO of Alat, remarked,
“We are incredibly proud to become a strategic investor in Lenovo and partner
with them on their continued journey as a leading global technology company.
With the establishment of a regional headquarters in Riyadh and a world-class
manufacturing hub powered by clean energy in Saudi Arabia, we expect the Lenovo
team to further their potential across the MEA region.”
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When the partnership with Alat was first
announced, Lenovo also unveiled plans for a three-year, $1.15 billion Warrants
Issuance to raise additional funds for future growth and to expand its capital
base. The Warrants were fully subscribed, with 43% of the total purchased by
Lenovo’s leadership, signaling strong confidence in the company’s ongoing
transformation and its prospects in global markets.
Midha concluded, “We are incredibly
proud to become a strategic investor in Lenovo and partner with them on their
continued journey as a leading global technology company.”
Source: Arab News
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