Alat Ainatt and LENOVO GROUP (00992) held a groundbreaking ceremony for a new production base in Saudi Arabia.

Alat Ainat, an innovative company dedicated to driving global industrial transformation by establishing a world-class manufacturing center in Saudi Arabia, jointly held a groundbreaking ceremony for a new manufacturing base in Riyadh with the global technology leader, LENOVO GROUP (00992). The new factory will be located in the "Riyadh Comprehensive Zone" operated by the Saudi Integrated Logistics Zone (SILZ), covering an area of 200,000 square meters. It will be designed, constructed, and operated with high standards of sustainable development, with an expected annual output of millions of "Made in Saudi" laptops, desktops, and servers. Following the approval of shareholders and regulatory authorities, the two parties announced on January 8 the completion of a 3-year $2 billion interest-free convertible bond investment and reached a strategic cooperation agreement to be announced by May 2024. This important development marks a solid step forward in the strategic cooperation between the two parties, with the growth of LENOVO GROUP in Saudi Arabia and the Middle East poised to accelerate. Amit Midha, CEO of Alat Ainat, and Yang Yuanqing, CEO of LENOVO GROUP, jointly attended the ceremony. According to the plan, the new factory is expected to start production in 2026, located in the Saudi Integrated Logistics Zone (SILZ), just a 15-minute drive from Riyadh International Airport. Once completed, the factory will become an important part of Lenovo's global manufacturing network, with manufacturing bases in over 30 markets including China, Argentina, Brazil, Germany, Hungary, India, Japan, Mexico, and the United States. At the same time, the new factory will enhance the resilience and flexibility of its global supply chain, while providing more agile services to customers in the Middle East and Africa. LENOVO GROUP is highly acclaimed in the industry for its excellent operation of the global supply chain, consistently ranking among the top supply chains worldwide. In Gartner's Global Supply Chain Top 25 ranking, LENOVO GROUP ranks 10. The Riyadh new factory will further expand LENOVO GROUP's presence in the region, bringing industry-leading products, services, and solutions to the Middle East and Africa, taking full advantage of the high growth opportunities in the information technology and enterprise services industry in the region. Yang Yuanqing, Chairman and CEO of LENOVO GROUP, stated, "This strong strategic cooperation and investment will help Lenovo further strengthen its global presence and seize the tremendous growth opportunities in Saudi Arabia and the Middle East and Africa. We are delighted to form a long-term strategic partnership with Alat Ainat and with our global leading supply chain and innovation capabilities, Lenovo will help Saudi Arabia achieve its 2030 vision of economic diversification, industrial development, technological innovation, and job growth." Amit Midha, CEO of Alat Ainat, said: "We are honored to be strategic investors in LENOVO GROUP and to work together to help them maintain their leading position in the global technology industry. Alat Ainat and LENOVO GROUP have also reached a business expansion agreement, leveraging Alat Ainat's extensive local network and market insights. With Lenovo establishing its regional headquarters in Riyadh and building a world-class manufacturing base powered by clean energy in Saudi Arabia, we look forward to seeing Lenovo further unleash its potential in the Middle East and Africa." On the same day, Yang Yuanqing also attended LEAP 2025, the largest technology event in the Middle East region held in Riyadh. In the opening ceremony, Yang Yuanqing stated, "Next, LENOVO GROUP will establish its headquarters in Riyadh for the Middle East and Africa regions and open new flagship retail stores to further connect with local customers. We are proud to embark on a new chapter of growth, innovation, and collaboration, and look forward to building a more intelligent future together." The Middle East and Africa markets are becoming a hotbed of competition for global IT companies, with Saudi Arabia being an economic and technological hub in the Middle East. This edition of LEAP 2025 attracted many world-leading technology companies including LENOVO GROUP, and the Middle East boom continues to rise. The investment of LENOVO GROUP and Alat Ainat in Saudi Arabia will greatly assist Saudi Arabia in achieving its economic goals, aligning well with the strategic planning of the Public Investment Fund (PIF) of Saudi Arabia and the "2030 Vision" of Saudi Arabia. It is predicted that this cooperation will create up to 15,000 direct jobs and 45,000 indirect jobs, laying a solid foundation for sustainable growth and national development of Saudi Arabia. By 2030, the cooperation between the two parties is expected to contribute up to $10 billion to Saudi Arabia's non-oil GDP. Investment in LENOVO GROUP is one of the many investment plans that Alat Ainat has launched before 2030, aiming to leverage Saudi Arabia's rapid development in the technology field to enhance its capabilities in this area. Alat Ainat will also empower private enterprises to develop through its own business system and cooperation with global leading technology manufacturers, optimizing the business environment. Currently, Alat Ainat is focusing on nine business sectors to build innovative and manufacturing capabilities, including semiconductors, smart devices, smart buildings, smart home appliances, smart healthcare, electrification, advanced industry, next-generation, and AI infrastructure. The company will produce 34 types of products in these nine areas and has hired top industry experts to lead each business sector.