Lenovo & Saudi Alat Building Green Manufacturing Facility
Lenovo, a leader in electronics manufacturing, is making headlines with its latest strategic initiative.
The company’s commitment to enhancing its sustainability efforts has led it into a partnership with Saudi Arabia’s Alat, a firm known for its dedication to eco-friendly manufacturing practices.
This collaboration marks Lenovo’s expansion into the Middle East and Africa, while also supporting Saudi Arabia’s sustainable development goals outlined in Vision 2030.
The scale of the investment is significant, with Lenovo set to inject US$2bn into Alat through zero-coupon convertible bonds.
Such a substantial investment will play a pivotal role in the Kingdom's efforts to diversify its economy, focusing on sectors like tourism, sport and environmental sustainability.
A visionary facility
At the heart of this partnership is the development of a cutting-edge manufacturing facility in Riyadh, slated to begin operations by 2026.
The facility will produce millions of personal computers and servers annually, powered by clean energy to ensure sustainable operations.
A key aspect of the project is the focus on nurturing local talent, with Alat aiming for the site to become a hub for research and development teams dedicated to creating entirely Saudi-made products.
This move highlights Lenovo's commitment to expanding its global manufacturing presence, which already includes key hubs in Argentina, Germany and India while adapting its offerings to meet the specific needs of MEA consumers.
“With the establishment of a regional headquarters in Riyadh and a world-class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region,” says Amit Midha, CEO of Alat.
Job creation & economic diversification
Lenovo's bold expansion goes beyond technological innovation, offering significant socio-economic benefits by creating thousands of new jobs in Saudi Arabia.
This initiative aligns seamlessly with the objectives of Saudi Vision 2030, supporting economic growth while fostering workforce diversification.
“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 be a benefit to KSA as it drives its Vision 2030 goals,” says Yuanqing Yang, Chairman and CEO of Lenovo.
At the heart of this alliance is the creation of a regional headquarters in Riyadh.
This hub serves not only as an operational centre but as a strategic cornerstone for Lenovo, enabling the expansion of flagship retail spaces, strengthening marketing efforts, fostering R&D growth and cultivating strategic partnerships across the MEA region.
MEA: a thriving hub for tech growth
The MEA market is experiencing rapid growth, fuelled by accelerating digital transformation and infrastructure advancements.
Lenovo’s partnership with Alat is more than just market entry—it cements its leadership in the region.
With Alat's extensive local expertise and broad networks, Lenovo gains significant strategic advantages to drive its expansion efforts.
Ken Wong, President of Lenovo, underscores the partnership's significance.
“This partnership is an opportunity to support innovation, create meaningful jobs and deliver truly localised solutions – all while contributing to the goals of Saudi Vision 2030,” he explains.
A commitment to long-term growth
In addition to the substantial US$2bn investment, Lenovo has unveiled a three-year US$1.15bn Warrants Issuance to secure additional funding. This move reflects the company’s strong confidence in its growth trajectory and transformation plans.
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 be a benefit to KSA as it drives its Vision 2030 goals.
The strength of this financial strategy is reinforced by leading advisors.
Citi and Cleary Gottlieb Steen & Hamilton are advising Lenovo, while Morgan Stanley and Latham & Watkins are supporting Alat, establishing a solid foundation for sustainable regional development.
“Through this powerful strategic collaboration and investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalising on the incredible growth momentum in KSA and the wider MEA region,” Yang explains.
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