Landmark Partnership: Alat and Lenovo Break Ground on New Manufacturing Facility in Riyadh
In a significant development for the technology industry, Alat, an innovative company committed to transforming global industries, and Lenovo, a leader in the tech world, have officially commenced the construction of a new manufacturing facility in Riyadh, Saudi Arabia. This event marks a milestone in establishing a world-class manufacturing hub in Saudi Arabia, reinforcing the Kingdom’s position as a growing center for technological advancement.
The new facility will be built on a sprawling 200,000 square meter site at the "Riyadh Integrated" area, managed by the Special Integrated Logistics Zone (SILZ). This factory will become a pivotal site for producing millions of laptops, desktops, and servers, all branded as "Saudi Made." The aim is to uphold high standards of sustainability in its design, construction, and operation, reflecting the commitment to environmental responsibility.
This groundbreaking ceremony follows the closure of a significant deal, which was officially announced on January 8th, 2025, after receiving the necessary shareholder and regulatory approvals. The collaboration represents a US$2 billion investment, achieved through a three-year zero-coupon convertible bond, and a strategic partnership first revealed in May 2024.
Manufacturing Hub to Strengthen Global Supply Chain
The new manufacturing hub is scheduled to begin production in 2026 and is strategically positioned just 15 minutes from Riyadh’s international airport. This location in the Kingdom’s Special Integrated Logistics Zone (SILZ) complements Lenovo’s extensive global manufacturing footprint, which includes over 30 factories in countries such as Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the USA. By establishing this new hub, Lenovo aims to enhance its supply chain’s resilience and flexibility while being closer to its customers in the Middle East and Africa (MEA) region.
Lenovo’s supply chain is renowned for its excellence, often ranked among the world’s top supply chains across all industries. Recently, Gartner ranked Lenovo as #10 on its list of the world’s top 25 supply chains, underscoring its efficiency and reliability. The new factory in Riyadh will build on Lenovo’s existing presence in the region, enabling the company to bring its industry-leading products, services, and solutions to market more swiftly, capitalizing on the significant IT and business services industry growth momentum in the MEA region.
Driving Economic Growth and Job Creation
The partnership between Alat and Lenovo is set to make a substantial contribution to Saudi Arabia’s economic objectives, aligning with the Public Investment Fund’s (PIF) strategy and the Kingdom’s Vision 2030. It is projected to create up to 15,000 direct jobs and 45,000 indirect jobs, supporting sustainable growth and national development. The cumulative non-oil GDP contribution is expected to reach up to $10 billion by 2030.
In addition to the manufacturing facility, Lenovo plans to establish a regional headquarters for the Middle East and Africa in Riyadh. This headquarters will serve customers in the region and beyond, featuring a flagship retail space and expanded investments in Research and Development (R&D), marketing, and strategic partnerships in both Saudi Arabia and the broader MEA region.
Leadership Perspectives on the Partnership
Yuanqing Yang, Chairman and CEO of Lenovo, expressed enthusiasm for the collaboration, stating, "Through this powerful strategic collaboration and investment with Alat, we gain greater global presence, a strong regional foothold, and the ability to capitalize on the incredible growth momentum in KSA and the wider MEA region. We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain capabilities, as well as our innovation, will benefit KSA as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation."
Amit Midha, CEO at Alat, also shared his thoughts, saying, "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. Alat and Lenovo have also entered a business development partnership which will leverage Alat’s extensive relationships in the region and local market insight. 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."
Alat’s Vision for Technological Advancement
The investment by Lenovo is part of Alat’s broader strategy to enhance the technological sector’s capabilities in Saudi Arabia by 2030. This plan takes advantage of the rapid development within the sector, empowering the private sector and enhancing the commercial environment through Alat’s business systems and partnerships with leading international technology manufacturers.
Alat is at the forefront of innovation, creating manufacturing capabilities across nine business units, including semiconductors, smart devices, smart buildings, smart appliances, smart health, electrification, advanced industrials, next-generation technologies, and AI infrastructure. The company plans to manufacture products in 34 categories across these units, leveraging the expertise of some of the world’s most experienced global industry leaders.
Conclusion
This groundbreaking collaboration between Alat and Lenovo is more than just a business deal; it is a strategic move that promises to bring significant economic and technological advancements to Saudi Arabia and the entire MEA region. As the world continues to digitalize, such partnerships play a crucial role in shaping the future of technology and industry. With a focus on sustainability, innovation, and economic development, this new manufacturing facility in Riyadh is poised to be a game-changer for both companies and the region.
For more detailed information, you can visit the original website link at Lenovo’s pressroom.
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