RIYADH — Lenovo Group Limited has announced a significant expansion in Saudi Arabia, including the establishment of a tech and manufacturing hub, as part of a Strategic Collaboration Framework Agreement with Alat, a Public Investment Fund (PIF) company. This move aims to enhance Lenovo's global presence and support the Kingdom's shift towards sustainable manufacturing aligned with its clean energy goals for 2030. The agreements, including a $2 billion investment in zero-coupon convertible bonds, will bolster Lenovo's transformation into a solutions and services-led enterprise and enhance its manufacturing capabilities in the Middle East and Africa (MEA) region. The planned developments in Saudi Arabia include a regional MEA headquarters in Riyadh and a new PC and server manufacturing facility, poised to enhance service delivery across the region and improve global supply chain resilience. This collaboration is set to significantly contribute to Saudi Arabia's vision of becoming a global sustainable technology manufacturing hub focusing on sectors like semiconductors, smart devices, and AI infrastructure. Yuanqing Yang, Chairman and CEO of Lenovo, emphasized the strategic partnership's role in propelling Lenovo's growth and innovation in the MEA region. Additionally, the strategic investment will enable Lenovo to repay existing debts and support general corporate activities, reflecting strong confidence in Lenovo's market leadership and growth prospects. The agreement also includes potential equity conversion and warrant issuance, underscoring the financial strategies enhancing Lenovo's long-term business objectives.
