Might be another good place for an assembly plant, after Scottish Independence.
Lenovo has officially opened its first manufacturing facility in Europe, to locally build servers, storage systems and high-end PC workstations for customers across Europe, Middle East, and Africa. lenovo first euro manufacturing facility - Lenovo's new manufacturing facility in Pest. Pic: Lenovo The factory, located in …
It makes perfect sense from a Chinese perspective. Hungary is a 'High Income' country and wages are much higher than in China (GDP per Capita at PPP in Hungary is almost double that of China). However, we've seen with the recent supply chain disruptions that being a bit cheaper isn't worth much if you can't get your stock into the supply chain at all.
The reason many American and Asian companies have started to open factories in Europe recently is because they want to be closer to the people or companies buying their products. We're talking about roughly half a billion of the richest consumers in the world and some of the world's biggest manufacturing bases (four of the ten biggest manufacturing superpowers are in Europe) that are sourcing parts. Sourcing parts closer to home is all the rage at the moment and Chinese companies will need to follow if they care about their bottom line.
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