Flextronics currently provides mechanical and system solutions to Lenovo in China as well as manufacturing services in Brazil. As part of the arrangement, Flextronics enlarges its geographic service area for Lenovo products to include Europe and increases the number of EMS services it delivers for Lenovo.

Flextronics' Sarvar facility will manufacture computing products for Lenovo including commercial desktop, server and workstation products. It will also expand Flextronics' capabilities in Hungary, a strategic area for computing products within Europe. Terms of the deal were not disclosed.

"The new manufacturing facility in Hungary represents another important step in our strategic partnership with Flextronics. Our further collaboration in Europe allows us to centralize our activities and optimize our supply chain, while providing superior service to our European customers," said Gerry Smith, senior vice president, Lenovo Global Supply Chain.

Flextronics Hungary was selected for the production location of this business based on its ideal physical market location and proximity to Flextronics' Centre of Excellence for computing in Zala, Hungary.