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Lenovo’s Main Plant in Wuhan Industrial Base Completed and Expected to Reach RMB 10 billion yuan Output Value within the Year

Release time: 2013-05-09 13:55:28                                      Source: OVC

May 6, 2013, Lenovo’s Wuhan Industrial Base for global “Mobile Internet and Digital Home Business” (referred to as “MIDH” for short) capped its 80,000 square meters of main plant in the East Lake High-tech Zone. This marks a significant progress of the Lenovo Wuhan Industrial Base project.

Lenovo Wuhan Industrial Base will create Lenovo’s globally largest mobile production base of mobile home terminals, which will mainly produce high-end phones and tablet PCs.

In 2012, market reports of the global smart connected devices sector show that the sales volume of Lenovo mobile terminals has been ranked third in the world next to Samsung and Apple. This means among other things that Lenovo Wuhan Industrial Base has huge development potential.

The investment agreement for Lenovo Wuhan Industrial Base was signed in May 2012. The construction of the base officially commenced in December 2012. The main plant was completed on May 6 this year. The installation of production equipment will start on July 15. The commissioning is scheduled on September 1 and the commercial production is scheduled on October 8. On each and every node point of the project, Lenovo Group’s senior vice president Qiao Song always personally takes charge of inspection.

After put to full production in October, the Wuhan Base will generate output value of RMB ten billion yuan within this year. This means among other things that a seventh enterprise of RMB ten-billion yuan scale in East Lake High-tech Zone will come into being following FiberHome Communication Technology Co., Ltd.; Sunshine Kaidi New Energy Group Co., Ltd.; Foxconn, and others.

Within five years, an estimated total investment of RMB 5 billion yuan will be put in the base for the construction of the production base project, the MIDH Operations Center project, and their associated facilities. In Phase I, the base will employ 5,000 people and have production capacity of up to 50 million units, with products covering the full range of Lenovo cell phones and tablet PCs, and annual output value exceeding RMB 50 billion yuan.

Located at No. 17 High-tech Fourth Road in East Lake High-tech Zone, the base occupies land of 190 mu and has gross floor area of 200,000 square meters. The rest buildings (auxiliary production plant, basement, office area, etc.) have gross floor area of 120,000 square meters and have achieved 20 percent of the scheduled construction progress. The overall civil engineering work is expected to be completed by the end of June, with installation and commissioning of the equipment scheduled in mid-July and commercial production scheduled to start in October. The employees’ dormitory has gross floor area of 45,000 square meters and will be fully equipped with basic furnishes and home appliances. With the main structure completed and decoration standards settled, the dormitory building is expected to be delivered by the end of August.

In its rented offices in the Optics Valley Financial Harbor for the transitional period, Lenovo MIDH Operations Center started handling business on March 19, 2013 and has now completed the recruitment of about 1,000 people. It will employ an estimated 3,000 people in this year and will ultimately provide 8,000 jobs.

On the same day, Mayor Tang Liangzhi investigated Lenovo’s “Wuhan Base” construction project. He visited the employees’ dormitory building and the plant building both of which under construction, and held an informal discussion meeting with the senior vice president of Lenovo Group Qiao Song. The mayor says that Wuhan city will work together with Lenovo Group to seize the golden opportunities brought by the tide of mobile Internet, and that various departments of Wuhan city will continue providing quality services and spare no effort in helping Lenovo become a world class company, resembling a “Samsung” or an “Apple” of China.

Guan Wei, vice president of Lenovo Group and other Lenovo executives attended the meeting.

Member of the Standing Committee of the Municipal Party Committee and First Vice Mayor Jia Yaobin, Member of the Standing Committee of the Municipal Party Committee and Secretary of East Lake High-tech Zone Administrative Committee Party Working Committee Hu Lishan, Vice Chairman of Municipal Political Consultative Conference and Director of East Lake High-tech Zone Administrative Committee Zhang Wentong, and heads of the relevant department directly under the municipal people’s government accompanied the mayor in the investigation and the meeting.

Deputy Directors of East Lake High-tech Zone Administrative Committee Xia Yamin and Shen Liefeng participated in the mayor's investigation.