Chinese computer manufacturer Lenovo will build a 2.2 million EUR plant in Üllő, on the outskirts of the capital, Minister of Foreign Affairs and Trade Péter Szijjártó announced, according to a report by state news wire MTI.

The government is supporting the investment, which will create 1,000 jobs, with a 5.4 million EUR grant, Szijjártó said. Production could start early in 2021, he added. Lenovo will export more than 90% of the products made at the plant.

In a video message, Lenovo VP Guan Wei said the plant will make desktops, workstations, and data center products. The product palette could be expanded later, he added.

Lenovoʼs management picked Hungary for its first European plant because of the central location, excellent transport connections, the well-trained labor pool and the favorable economic environment, he added.

The new manufacturing facility succeeds a long-term partnership in Hungary with third-party contract manufacturer Flex, Lenovo said in a press release.